Table Of ContentTableo fC onte nts
Chapt1e r 4.4I cnerasCiacnpigatb yyL iBnaaelni cn6g3
4.5S cUaplt Heoi gVhloeurm6 e6
Introducti1o n
IncreaCsaipnagcb iyRty e plictahtei ng
1.1L ernianOgjbc eitvaenFsdr ame3w ork
Line
1.2R aodM aoptf h Beo o6k 67
Increasingb ySC ealpeacctiityv ely Adding
Workers
Chapt2e r 67
Increasingb yFC uarptaShcpeiertyc ializing
10
TheP roceVsise wo ft heO rganization Tasks
4.6S muma69r 7y2
2.1P resbHyotsepirPiniht aianll a 1d0el phia
4.7F urRtaehdeirn7 g4s
2.2T hrMeeea souPfrrc eeossPs e rafneocr 1m5
4.8P rciatecP roblems 74
2.3L i'tLsta lw1e 6
2.4I vnenTtruonarsnyI dv ne nCtoosr1ty9s
2.5F iRvaees otHnoos Il vnde nt2o3r y Chatpe5r
PipelIinnvee ntory TheL inkb etweeOnp eratioannsd
23 80
SeasoInnavle ntory Finance
24
CycIlnev entory 5.1P aDuolw Cnasnb eitma8k1e rs
25
DecoupIlnivnegn tory/Buffers 5.2B udiilanRng lO CT re8e2
26
SafeItyn ventory 5.3V lauOipnegr aItpmiroonvae8lm7 e nts
2.6T hPerd outPc-ore2c6s Msa tr2i7x
5.4A nzailnOygp erBaatsioeonFdni csna ialn
2.7S mumar2y9
Dat9a0
2.8F urRtaehdeirn2 g9s
5.5S mumar9y5
2.9P rciatec Pro2b9l ems
5.6F urRtaehdeirn9 g5s
5.7P rciatecP rob9l5e m
Chapt3e r
UnderstandtihneSg u pplPyr ocess: Chapt6e r
EvaluatPirnogc eCsasp acit3y2
Batchianngd O theFrl owI nterruptions:
3.1H otwDo r aaPw or ecsFslw Do igara3m3
SetuTpi mesa ndt heE conomiOcr der
3.2B otctklP,erc snoeCsea cpiataynF,dl Rotawe 97
QuantiMtoyd el
(Throu3g8h put)
6.1T hIepm caotSf t euopnCsp a aict9y8
3.3H oLwo DnogIe Ttsa tkPoerd ouec Cae rtain
6.2I tnectriaboent wBeachetinan ngd
AmoouSfnp tup ?l 4y0
Ivnent1o10r y
3.4P rcsoeUst zitaliaionCnda cpiaty
6.3C hooaBs aictnhSzg iie tn hP er ecsoeef n
Utili4z1a tion
SteuTpi m1e0s3
3.5W orklaonIadpmd l Uiteidl i4z3a tion
6.4B aalnicnSgte uCpo stIsvn ewniCttoo:hsr tys
3.6M ulTtyiepposFlf le ow Units 44
ThEeQO M od1e0l 6
3.7S mumar4y8
6.5O bserRvleaatttitoeoh Edneoc s n ocOm rider
3.8P rciatec Pro5b0l ems
Quant1i1t0y
6.6T rnaseBrfa htec1s1 4
Chapt4e r
6.7S teuTpi Rmdeeu tcio1n1 4
56
EstimatainndgR educinLga borC osts 6.8O thFelrIot nwe rr:uB pffurteo iro ns
4.1A nailnaygAnz s sembly5 6O peratiSffourne 115
4.2T itmPoeor ecsaQs ua ntSiattrytw iintgh 6a.n9S mumar1y1 7
EmpPtoreycs 5s8 X 6.1F0u rRtaehdeir1n 1g9
4.3L abCoorn atnedlnT etiI md6e0 6.1P1rc iatecP roblems 119
xii
TabloefC ontenxtisi i
Chapt7e r Chatpe9r
VariabialnidtI yt Ism pacotn P rocess QualiMtayn agemenStt,a tistPircoacle ss
PerofrmanceW:a itinTgi meP roblems1 24 Controaln,d S ix-SigCmaap abili1t7y8
7.1M ottniigEv xaa:m pSAmlo eewUhnalrtie sati9c. 1C otrnolVlraaiitn:iPg cor tnaaiMlco tiv1a7t9i on
Call 1C2e5n ter 9.2T hTew Topy eosVf ra iinao 1t80
7.2V raiiatbWyih:elI rCteo mFersao mnH do Iwt 9.3C osntctriuCnogn Cthraor1lt8 s2
CaBneM easu1r2e7d 9.4C onCthraEorxlta mopmalS erei vecf r
7.3A nailnaygAnz r rPirveoascl1s 2 9 Steti1n8g5
9.5D esSiepcgfiinac tiaonPndrcs soe s
StatiAornrairvya ls
131 Capab1i8l8i ty
Expone1nnttiearla Trirmievsa l
133 9.6A titubrtCeo nCthrao1rlt9 s0
Nonexpon1enntteiraalTr irmievsa l
134 9.7R bouPsrteo sDcse si1g9n2
SummaAryn:a lyazniA nrgr iPvroacle ss
7.4S revei cTViraamibleii 1t3y 5 135 9.8I pmcaotYf ei ladnDsde e tfcosnP reoscs
7.5P rcetditinhAgeve raWagtieiT nmigef r o the Flow 194
CaosOfen Reseo ucre 13 7
Rework
7.6P rcetditinhAgeve raWagietT iinfmgroe the 195
EliminFaltoiUwnn gi ts tfhPrero omc ess
CaosMfeu ltRsieopculsere 1 41 196
CosEtc onomaincLdso cataifToenPs oti nts
7.7S recvLeie vieWnlai stT iinmge 196
DefeacntdVs a riability
Prob1l4e4m s 9.9A P orecsfrsoI pmro1v97e 1m9e8n t
7.8E ocnocIm pmiilactiGoneenrsa:at S aitffinngg 91.0F urRtaehdeir2n 0g0
Pla1n4 5 9.11 PrciatecP rob2le0m0s
7.9I pmcaotPf o o:El ocinnogmoSiface ls1e 4 8
71.0P riRolureiiWsntai yt Liinng1e 5s2 Chatpe1r0
Servicee--DTeipmenPdreinoRtru iltye s
152 LeanO peratioannsdt heT oyotPar oduction
Service-Time-PIrnidoeRrpuieltyne dse nt
7.11 RdeuicnVgra iab1i5l3i ty 152 System2 02
10.1T hHesi tooTfryoy o t2a0 2
WaytsoR eduAcrer iVvaarli ability
153 10.2T PFSr ame2w0o4r k
WaytsoR educe STeirmVveai rciea bility
71.2S mumar1y5 6 154 1.03T hSeve eSnuoc rseo Wfa s2t0e5
71.3F urRtaehdeir1n 5g7 1.04l I:MT actihnSgpu pwliyDt ehm a2n0d8
71.4P rciatecP rob1l5em7s AchiOenvee- Unit-aFtl-oaw- Time
208
Produactte hR ea toefC ustoDmeemra nd
209
Chapt8e r ImplemPeunlStly stems
10.5Q ualMiatnya ge22m109e1 n t
TheI mpacotf V ariabiolniP tryo cess
1.06E xpoPsrionbtglh ermIovsnue gnht ory
PerofrmanceT:h roughpLuots ses1 63 Rdeutcio2n1 3
8.1M otiEvaxamtepi:sWln hgAy ve raDgoNe ost 10.7F lexi2b1i4l ity
Wor1k6 3 10.8S atndzaatroidWfoio nra knR dde utcioofn
8.2A mbaunelDc iver1s6i4o n Vraiab2i1l5i ty
8.3T hrouLgofhsrops Su maitp le 10.9H umRasenoc uPerrc iatecs2 16
Prceos1s6 5 10.1L0e Tarnao nrasmotfni2 17
8.4C ustIopmmaectraie ne Tdnh roughpu1t0. 11 FurRtaehdeir2n 1g8
Los1s6 9 10.1P2rc iatecP orbelms2 18
8.5S veeRrsaeoluc srew tiVhra iiatibyni l
Sqeuceen1 71
Chapte1r1
ThReo loefB uffers
8.6S mumar1y7 41 72 BettionngU ncertaDienm andT:h e
8.7F urRtaehdeir1n 7g5 NewsvendMoord el 220
8.8P rciatec Pro1b7l5e ms 1.11O N'eIicln.l2 21
xivT abloefC ontents
1.12 Itnordiuocttntoeh N ewsvMeondd2eo2lr 3 1 .36C hooasOnir n-dpguet- rLoe tvMeoel ae t
1.13AnC otnucrstaiD negm aFnocardse 2t2 3 SreveTi acrg3e0t0
1.14T hEex cptePerfd-oi MtazxniigOm rider AnI n-StPorcokb abTialrigtye t
301
Quaniytt 232
A FiRlalt Tea rget
1.15P erfeoMr emaasnu2cr3e6s 1.37C hooasAnip np3rg0rt1i o Seapre cvLeie v3e0l4
1.38C otonrllOirndgeC rotiss3n 0g7
ExpecLtoesSdta les
237 1.39M etrdoWnriac p3-Olu p
ExpecStaelde s
239 1.301 ManaigaIselnirt gs3h 12
ExpecLteeftdo vIenrv entory
239 1.311 Smumar3y1 5
ExpecPtroefdi t
240 1.31F2ut rhReaerd i3n1g6
FiRlalt e
240 1.31P3rc icatPer ob3l1em6s
In-SPtroobcakb ialniSdtyt ockPoroubta bility
1.16O hteOrbe jtcviefrso Choosin24g1 an Order
Quaniytt 242 Chapt1e4r
1.17M analLg eersis2ao4n4s
Ris-kPooliSntgr ategtioRe esd ucaen d
1.18 Smumar2y4 6
1.19F uterhRrae di2n4g8 HedgeU ncertain3t2y1
111.0P riaecPc rtoblems 248 14.1L coaitoPno ol3i2n1g
PooliMnegd troFniiecIl ndv entory
S 322
Chapt1er2 MedtronDiics triCbeunttieorn( s)
s 326
ElectrCoonmimce rce
Assemble-to-OMradkeer-,t o-Oradnedr , 1.42P roPdouoclt3i 33n02g8
QuicRk esponwsiet Rhe actiCvaep acit2y5 6 1.43L eTaidPm oeno gCl:oi nasetodDl itisrdiiobnu t
1.21E vlaatuniga nMdi nziintmegihN ewsvendora'nDsdea lyDeffide rtietaonin3 36
Dem-aSnpudpMliyst hmcC aots 257
ConsoliDdiastterdi bution
1.22W heItnseh M istmcCahotH s gih?2 59 336
DelayDeidf ferentiation
1.23R deuicnMgi sthmcC aotswsti Mha ktoe- 14.4C acptiaPyo owltiiFhn3l 4g1e xible
Ord2e6r2 Manacuutfri3n4g4
1.24Q uikcR sepowntisRheae tc viCe acpiyta 263 14.5S mumar3y4 9
UnlimibtuEetxd p,e nsRievaec,tC iavpea city 14.6F utrhReaerd i3n5g2
263
LimiRteeadc tCiavpea city 14.7P rcicatPer ob3l5e2m s
12.5S mumar2y7 4 267
1.26F utrhReaerd i2n7g6 Chatpe1r5
12.7P rcatPircoeb 2l7em6s
RevenuMea nagemenwti thC apacity
Control3s5 7
Chatpe1r3
1.51R veenMuaen agtae nMmdae rngin
ServiLceev elasn dL eadT imeis nS upply
Artihimce3 t57
ChainTsh:e O rder-upI-ntvoe ntory
15.2P rteotcoinL evaenBldos o kLiitnmsg3i 59
Model 283 15.3O verbo3o6k5i ng
1.31M etrdocsn' ipSpCulhya 2i8n4 15.4I pmlettmaoeinonR fve enue
1.32T hOer detrMo-o udDpee-lsa ingdn Managte 3m6e7n
Ipmletmaoetnn2i 87
DemanFdo recasting
1.33T hEen d-oIfv-netPonerLryei vo2ed9l 0 368
DynamDiecc isions
1.34C hooDseimnaDgnitr dsit iboun2s9 1 368
VariaibnAi vlaiityl Caabplaec ity
1.35P efrroamneMc easu2r9e5s 368
ResveartiCoonmsi inngG roups
368
In-StaoncSdkt ockPoroubta bility EffectSievgem enot/Ciunsgt omers
295 368
ExpecBtaecdOk r der MultiFpalrCeel asses
297 369
FiRlalt e SoftwIamrpel ementation
298 369
ExpecOtne-dH aInndv entory VariaitnCi aopna cPiutyr chNaosAtel :l
299
PipelIinnvee nEtxopreyc/Otne-dO rder CustomPeurrsc hOanseUe n iat/C apacity
Inventory 1.55 Smumar3y7 1 369
300
TabloefC ontenxtvs
1.56F ruteRhre ad3i7n2g 1.66 Summa4r0y3
1.57P rciatecP rleombs3 72 1.67F ruhtre Rnega4 d0i3
1.68 PrciatecP rleombs4 03
Chatpe1r6
SupplCyh ainC oordinati3o7n7 AppendiAx S tatisTtuitocrsi al4 06
16.T1he B lulhpwiE ffetcC:ua saensd
AppendiBx T ables4 15
Cnosecqseu 3e7n7
OrdSeyrn chronization AppendiCx E valuatoifot nh eL oss
380
Order Batching
382 Functio4n2 7
TradPer omotainoFdno swr arBdu ying
383
ReactainvOdev erreaOcrtdievrei ng AppendiDx E quatioannsd
386'
ShoargtGe aming
16.2B luwlhpiE ffetcM:3it 8ai7 tggSi tngriaet3se8 8 Apprxoimation4s3 0
SharIinnjgO fmation AppendiEx S olutitoonS se lectPerda ctice
389
SmoothtihFnelg o owfP roduct
389 Problems4 37
EliminPaatthionlgo Ignicceanlt ives
390
1.63I UcnsneitnVegnCid novorifce-slt Mi aannIS an ugvgeeanldns t3OSs9f0ueY l psyp Glossar4y6 2
Cha3i9n2
Referenc4es7 1
16.4B yu-cBkCa notcrta3s9 5
1.65M orSeu pCphlaCyino ntcsr t a401
Indeoxf K ey" Howt o"E xhibit4s7 4
QuantDiitys counts
40I
OptiCoonnst racts Summaryo fK eyN otatiaonnd
401
RevenSuhea ring Equation4s7 5
401
Quantity FlCeoxnitbraicltisty
402
PriPcreo tection Index4 79
402
Chapter
Introduction
Ac etnrpearmlie s eicnnomo isic tsah ptir csae jdsuttmo atscuhpw phild tmeyna di:t fehe r
iescx sedsme nadp,cr seir eii;stf eh eri escx sessu pppcrlseify lla,B. tuw hiela ne comniost
mafyid cn mofowrtitht sht iehormayan,gr eisnp rctaiocfetd eon noT tot. eh mec xses
dmenadme asnl sortve neeua dne cxsessu ypm pealsnw sadtre seuocrseT.eh fylu ylu dnre
sttaahnmtdac ithgns upwphild tmeyna ides txe remyld ffiiucladntr qeueimsror teoo slt ahn
jsuptr aijdcsuete mnts.
Cosinedtrehf owlnilegoax mlpse:
I2n0 0Nni6et,dn olu acnhtehdWei ig aecm osonlwetim h ucschucs -essom ucshu c
cse• tsah tth cemo pnacy ounlomdtka ee nuoguhin ttkosee pup wti dhm ena.dS moee tner
pernewuourdlws a iilntog lnn iset po uarscseahc rucineot lnsty to uamru odna dns letleh m
olnnifero s vereahlude nrddlo loaevrtreshr teapiirc.le
In2 00D7ell,l so itt wsor ldemw aikrteds ahrleaee dsrphti oH PT.r gyt iorng ena i
mo•me tnuDmle,ol fr efdlea oppctmo peusrtt co osnurmisevn a urcsiloo osrU.n rftoautlney,
porlbmesw hid tucsotmn nittaaiiotnnh p enat niigpr eosspc erevtnedDel flor mr aimgnpu p
pordutico,cn uaisgnl ogdn leawyhisci,htn u cmua sdse moec sumteortsco n acltee hroi drre.
IJnn aaur2y0 0Vn4au,ga erndyej dtoeh g oodfro nteou fa infneltoo f$w 9 b.io4ln l i
•
itniom tust fuunadUlsn r.ft oaeutnlVyna,ug awrhodi ,ws el kl onnwf rot ehril woc somtu lt ua
fnusdh,da harat dmi eh naldnigteh fl odoo cfla stl ioc tlascl ee -nrftrote h ftriheewr eeskts
iJnn aauyrt,eh a vreaigvneseo tsrep tnn aerslvenyem iuentwsat igif nroh reo hrsic latlbo e
asnwredeb yaV naugarrpedrs neeatitevB.e eft oihsrsu eri gantc ivVinautgaynr,omd ra yl l
asnwredec lalwtisih n5 5sce odnsV.nau gabrgeda hnrin igtob lostsetrag bff iuittontosk
svereamlot nsht rote rnu sreivcbea tcaokn a c ceapebltl veel.
IJnlu 2y0 0a67 .,m8 agi-nutdeera tqhukeah tic etnlrJ apanaa dns reoiusdlayam gde
teh•p rdoutcifocalnit ioyf Rk ineC ropm.ka,reo fp iosnrt gicnsso tgai bnuo$t.1 5ec0a.h
Cosenuqneltyd,ute ao l aocpfka rToytosat, wfracodset souh dtwo n1 f2ca otirsea dnl sot
anet smiatperddout cioo4fn6 ,v0ei0lhec0s .
I2n0 A0i5r,abn nuonsucd e poard utocindl eafyoi rntw es5 5-0pseasgnejrmu bjoe teth ,
•
A38T0hce.o mnppyau tethb mleao npr doutcicoonmc tpaoilsni wteihm tlisheo wfii grni tneh
arirca.Ift Jnu 2n0et0 ehc6 mo pyaa nnnonucaes cdeo dpn ordutcidoleynaa, g nda uiteco om
pclaiitoswn tiwh iignri,din acntgtiah tteh p orlbmeh dan tob eenslo ev.dA sar setuAl,ri ubs
etsiemtdaah titwt ou dll so4eb iiolenlruo frsmo i sbt tootmln ioee vtrhn exef to yuaerr. s
Ienra l2y0 0av 2it,cio mafc rac arsihGn e rnmydaid ie anr seuchel iecpotrae ftrte eh
me•dc ilat aemtg otehrew tithi hdersi pcahrhte dau snucscefusllayet mtpttfoei ddn s oalit n
ano epriagntr ooma etghi dtfi freetnh soptiaIltnseh U. ni dtS ete,aset evyrd atyehe ra er
tohsunasdo fpi aetrnqetursigi en emgrneccyra ew hoc nanboett r saprnodtte toe hn aerset
eemgrneycr oomad n/roh vaet woia ctos inedarbtlieebm feroec ieirvgenc rea.
2 Chapter
7
Thewreer 9e5m illdioosoneft s h fleu v accpirnoed ufcorte hd2e 0 02-2f0ls0ue3 a sionn
•
thUen eidSt taUtneofsr.nt aute1l2myi ,l ldiooswnees rn eou ts eadn d thoba edd e str(oavya ecd
cinigseo oodn lfyoro ne sfelau)sO .on nl8y3m illdioosonefts h e vfalccuwi enrpeer oduced
fotrh e nex2t0 0s3e-a2s(0oN0noc4,to. i ncaildl9e5y-n ,1t 2 83U.n)of rutnatietnlh ysa,et a
=
sotnh ewreerw ei despsrheoardtl aegaedtsiof,n l gu -rdeelasate,ths epde ciinCa oollrlayd o.
Alolf tchaessheeas vi enc ommont htehsyauf tfre f orma m ismabtecthw deeemna nd
ansdu ppwliytr,he speeictth er ttiom iotnrth goe itqrhu eaitnrit eis.
Thibso oikas b ohuotwf ircmasdn e sitghneo iprei roanttsob etmtaetrsc uhp pwliyt h
demaOnudr. motiissvia mtipsoltnya tBeybd e:t mtaetrc hsiunpgpw liytd he maanfi dr,m
gaians si ginciacfnotm petaidtviavneot vaegiretr si vaA lfsi.rc ma anc hitehvbiees t ter
matcthh rotuhgiehm pleenmtaotfit ohrnei gormooudsea lnstd h oep etriaosntarla tegies
weo utliintn hebi oso k.
Tos omewshoafttoe uncr h allteoen cgoen otmhiecow reyd o,a cknowliietpds og se
sibtlome i taitdgee ma-nspduplmyis matcbhye jsau dstpirnigcF eoesrx. a mptlheeefe, fc
timvaer kpertio cfe Wtihgiea mceo nsdoilrdei d suee t hteo sdtermoanBngud t.th pirsi ce
ajdsutmewnatns e ituhnedNrei rn te'ncsdo ontnroodrli N,di nte(nodror eaititlsce orlcstl) e
theex ats rurpIlnou tsh.we orr dwsev, i etwh parti acjdeut smeansta s ymptoofamp rob
lemr,a tthheaernv idenahc eea lostfyh sytM eomr.e oivnme arn,y octahspeerrsi ,ac jdesu t
menatrsie m possTihtbeil mepe.e ribeotdw teheienn itioafdt eimoaannn dd futlhfilelm ent
throsuugphpi lstyo soh too rrt heret ofaower beu yearnssd e llientr hmsea rkTehte.r e
simpilnsyo m arkfeoret m ergecnacriyeno peratinwga irtotioinmmgise nc,s a lcl enters,
orp istoni mrmiendgiasaft teaernle ya rthquake.
Whyi sm atchsiunpgpw liytd he madnidff iculsth?oa rnTtsh weie tsrh daetm acnadn
variyne, i tphreerd icotrua nbplree diwcatyaasnb,sdl u ep pilisyn le fxibOlnae v.e raang e,
oragnizamtiigohhnat v teh ceo rraemcotu onfrt e sou(rpceeospp rloed,au ncdt/,eo qru ip
mentb)um,to sotr ganizfiantdti hoenmss efelrqvueesni tnsl iyt uawtiitrohen sso uirnc es
thwer ong aptlt ahwcere o,nt gi maen,d /iontr h wer onqgu antFiutryt.h ersmhoirftei,n g
resouarccrelosos csa toirto inmisecs o sthleyn,c ei ntfhlee xiinsb uiplpFilotyery.x ample,
physiacrineao nwtsi l litnogr ush abnafdcor ktt hot hheo spaistt haely n eaerdeae ndd
retacialnenraofsotf r tdo i mmedimaotvepelr yo dfruocmto nleo cattoai noont Whheirl. e
iites s senitmipaolsltsyoai lbwlaeay csh iaep veeerc fmta tbceht wseuepnp ldye maanndd ,
succuelfs isrfcmosn tlilnsyut arfiovtreh gaota l.
Tab1le.p 1ro vais daemsp olfie n dustthrwaietwe isdl ils ciunts hsbi oso akn dde scribes
thecihra llteomn agtecs hu ppwliytd he manTda.kt eh aei rliinndeu( stlsratcy o luimnn
Tab1l.e) 1F.o. firs cyaela2 r0 07, ABirwriatyaiscs hhi ea7v 6e1.pd e rcuetnitl itzhaiatsti, o n;
a1 06-saeiartc (rtaahftve e rsaigizenet hefilre eto)na vhearda1,g2 2se e,a ts occupied with
ap ayipnags seanng3de8 r sfleyaitensmg p tIyf. BrAiiwtraiyscsho uhladvh ea fdou rm ore
(paypiansgs)e onnge earcflshi gthhtia,sti , ne carsietu st ilibzyaa btoi2uo.tpn5 e rcietcnsot r,
porpartoe fiwtosu hladv iene carsecdl botyso£ e 2 4m2i ilolwnh,i icashb o4u4pt e rcoefin tts
opeirnapgtr offori2 t0 0T7h.ii slt lruasatc ersi tliecsasElov nea:ns eemisnmgalilyml op vre
menitno peiroantfsore, x ampaul te,ia ltiiizonnec arsoef2 .p5e rcceanhnta ,va es iginciafnt
efefcotna f i'rpmsr obfiitlapirtieysc ely bfeormc oasuftsi ert,mh se,pi rro( fiitfth ehya vae
proifaisr t e)l atsimvapelellry c eonftta hgereie rv eHneunec.ie m,p roving btehtew eemna tch
suppalndyde mainasdc ritiimcparoltlarynept so nsiitfbyori flaim r'msa nagement.
Theo theexra mpilne sT 1ab.al1rede r awfornm a w idrea nogfes ettinhgesa:cl atrhe
deleirvy daenvdi rceaetisl,ai nnhdge ,a ivdnyu stEraycs.hu f fress iginciacfnotn sequences
duteo d emansdu-ppmliys matacnhedea scr,he qusipreecsei dat loiotzlois m proavned
manaigtoesp aeitrons.
Toc oncluidnet rooudrwu ecs ttiroobnn,ege llviyte h eaffte ctoipveeir oanmtasn agement
isab oeufetf ctimvaetlcyh siunpgp lyd ewmiatnOhdr .g aniztahtatitaok tnehsd e e siogfn
theoipre rasteiroinoasun asdgl egysr siivmepllye tmheteno too lfos p eramtainoangse ment
Itnroduc3t ion
TABL1E. 1E xapmloefSs u pply-MDiesmamatncdh es
Reatiling IroOnr eP lantE merngcey RooPma cemakersA iTrr avel
Supply Consumer Iroonre Mediscearlv iceM edical Seaotnss pecific
electronics equipment flight
Demand Consumbeurysi nSgt emeill ls Urgentf onre eHde asrutr geonT ravfoesrlp ecific
an ewv ideo mediscearlv icer euqirpiancge -timaen d
system makaetre xact destination
timaen ldo cation
Suppelxyc eedHsi gihvn enyt or Prifcaelsl Doctonrussre,s , Pacemaskietrs Emptsye at
demand cosftesw; andi nfrastriuncit nuvorereny t
invoerntytu rns aruen derutilized
Demanexdc eeFdosr gpornoef it Prirciesse Crowidnagn d Forgpornoef itO verbooking;
supply opporttyu;n i deylsai n EtRh;e (ytpicnaoltl y custohmaetsro
consumer potendtiivaelr saisosno cwiiatthe dt akdei fferent
dissatisfaction ofa mbaunlces mreidsikc)a lf li(gphrtol foists )
Actitoomn ast cFho recaqsutiicnkgI ;pf r ifcaetlsol o Staftfoi ng DistributiDoynn ampirci cing;
suppalnyd response lowp,r oductiporne didcetmeadn ds;y stheoml dinbgo okipnogl icies
demand faciilssih tuyt prioritiesp acemaaktve arrsi -
down oulso cations
ManageriaPle r-iunnnvitetyo r Priacreseso Delaiynts r eat-Mosptr oductAsb ou3t0 %o f all
importancec ostsc ofnosru mecro mpettihtaitvm ee notrt ransfe(rv alued $2s0ekaf)tle sym p ty;
elcetrorneiitclasi ntgh per iym ar have lbieeendnk tsop e4n-d5 m onthas1 2-%i ncrease
all toeox coefetedem np haisosin s death waitiinant gr unikns eautt ilization
neptr ofits reductihcneog s t ofa lseas persmoanek st hdefi ference
ofs upply befobreei unsge db etweperno fits
anldo sses
ReferenceC hap2t,e r Chap3t,er Chapter 7,C hap1t,e3 r Chatpe1r,5
The PrVoiceews sU ndresntdaitnhge V ariiatabyni Idlt s ServiLceev aenlds Revneue
of tOhrgea znaitioSnu;p pPlryo cesIs:mp acotnP rocesLse aTdi mes iMn anagemweintth
Chap1te1Br,e ttiEnvga luPartoicnegPs esrf ormanceS:u plpyC hainsC:a pacCiotnyt rols
onU ncertainC apiatcy; WaitTiinmge ThOer depr--tuo
DemanTdh:e Chap4t,e r Problems; IvnenytM oordel
Newsvendor Estimaantdi ngC hatpe8r,T he
ModeClh;a p1t,e2 rR educLianbgo rI mpacotfV ari-
Assemble-to-Order, aCboiistoltyns P rocess
Maek-to-Order, Performance:
anQdu ick ThrougLhopsuste s
Respownisteh
ReacCtaivpea city
wielnlj aos yi gnipfiecorarfnamtn caed vanotvaetgrhe e ciorm petTihtiosr sli.ees ss pseon
ciarlellye fvoras netn miaonra gegmievntethn re a zorp-rtohmfiainrt g fiinrsmm uss dte al
witihnm o decmo mpetiintdiuvset ries.
11. leraniOnbgj ectainvdeFas rm weork
Int hbioso wke,l ooakto r giaznataiseo nntsi tthimaeutss m ta ttchhse u pplwyh atothf e y
prodwuicttehh d ee mafnordt hepirro dIunct thp.ir so cweesw si,il nlt roadn uucmebo efr
quantimtoadteailnvsqde u alisttartiaietvwseehg, i wcehc ollectrievfetelory t ahse "tools
ofo petriaomnasn agemBeyn" tq.u"a ntmiotdaetwliem"v e ea sno mmea themaptrioccael
duroer equtahttaiatok inen sp uts a(d seumcahfn ordea csa aps rto,c ersastieent,gca .n)d
outpaun tusm btehrea itt ihsnetrr uamc atnsa ogenwr h attod o( how much tiobn uvye,n tory
howm annyu rsteohs a voen lclea,tc o.ri) no frmasm anaagbeorau r te lepvearnfto rmance
Chapter
4 1
mea(sgeu.tr.,ehea vgeteri aamc seut owmaefirrots sec retve,hai vgeneru amobpfea rt ients
itneh egmneycer rooecmt).,B. y" u qalistttareyta"gwi emv eea gniu dgapi rnciip:nfl roe
examicpnerlaetse,hfe l letxioyiyf bo piurrco tdifuoaincl idtericeetaeshsv ,ea roipfer toyd
utcosff re,e dscesutrovmeiep nrr si oorrdaientsrdyfo, ro h tT.he n esxceitto gvnie as brief
decrsipottfeihk oemnyo dsae nlsdtt reiagewsec v oeOrul.rrne iagno betjcifvrote ihb sok o,
puatss u iccnlctayws e cn a,t toice shas tuhdwoea nntwdshe nti om plteehtm eoonoftl s
opeiromanatsgn meaent.
Jsuatts eh t ooooflp se rmaatgnimeaoencnmsote i nf redefinroftmt seh,cyn a b eap plied
idnfi refewnat:y s
IO.p ermaantgaieomenntsto conal sb ee dtae opn pstluahirrtoee usc rse aerdaee s ff uis
ceinatpslo ysl ;set aihitbts eh,m oisastci hewvhiew dtha wteh vae.
2O.p ermaatgnieaomnesnl tcsn a b teuo sotemoda kdee sitrraaofbdfbsle ee-t cwmeoen
pegto ibentjicevs.
3.O permaatgnimeaoentnsot co nalb seu sterode gdenos rrite rstuuocruoerp erations so
tahwtec n ai mppreoomrvraefne ac lgom Unlltdieip mensismiuolntsa neously.
Wev ioeuwdr i vseertts oeoao csflmo sp lemteeonca thoa terhrIy.on h t ewro rds, our
foucisn seh ieetrxl cusointveh eq luya ntmiotdnaeotlercisxu vl sei ovntee hql uya litative
striaeWtsihe.tugo atn taialcmlyo d,ie itlds si ufflittcom ovbee ytoehn" ldbha b-hl"ao f
striaetse hgaonusdtt griwaeiitisttee,s a tsgoyte l oistneth m inuttcaiitacal eomlfPos ud.t
anheowrta wye,h v aed egsniteihdbs ok to por oavr ioidgreoo uptse iroangse mmeannta
eudactfiroo snat g ri,ahcg ti-heelvmealgn reao crno sltuant.
Wew illo paeprptalotsytoi foloi nrtsahm ptsr odsueccreeavs nig doo disan v ariety
oefn vitrsof-onrmma epnplta horae ehlc traefo,rmc laclne tteporca sme kaearnsfdo,r m
kiscocko tteor osir fireno eWnse p. r emsaendnyit v seergtspsterc i seineblceya utehsree
doneost a"e tsxadina"sro tdp eraetnivoinrHaoelcnn, met eehrndeto n.eo st ase gixlnies t
totoahalt p ptlaoilfi elrs mB syp. r egs evnaat roiitfneo toyle sxi pianglntn aehdip rra onsd
cnoss,t uwdielgln iattneshc paabtiaolp ipttihlkysyn ogwenloem adtwthaeotrp erational
segtt tehiyecn nuonter.
Cnosihdwoeo rp ertaotcoinalob snea s p ptloaic elacdln e tecrmo.mo npA r oblem
itnih isdn usittsrofi y na dna ppirtaonepu rmobcfesu rt osmeiercrrv ee prievsteeosn tat
ansiwnoecmrgi c nlaslT.he m orreee psrenwteahr tietie,hvl eelsksi esi lnoycm gic nlals
wlih lvatewo a ;ti uhtste,hh g iehwrli b lteeh l elov sfee rev pwireco Hvoiwdeelv.ae ibrso, r
tehs gielnl gaserdtr iocvfseo tirasn c laclne tseor,, ohbvavgiim noourrseelp yrt,ei sveenst a
odn uatlyws iloilc neratsehce so twseic unpre crlla .
Thef iursseto poefr maatgnimeaoentnsot io tsleos n stuahrrtee u sreocsar ues aesd
eefftcivapesol sys Aisbswluemee ne.ag e gi anb ecnhakmrigin nitwiitatrhhteo ietev chrela l
cnetaenrfdsi t nahdtteh p eorrfmcaoenof u crmo petbihevtaeoacsrcrs od git Fong iru1e:. 1
CmopetAii pstr oorgvf isadtrieenrs ptoinbmsueasetslho sa h gihcesortC smop.e tBhi sta or
lnogreperosn etsm iseb uhtsa lcosowstS.erpu rrs iingwlefiy dnt, ah ctmo piertt ooCu tper
fromusos n b hoct soatn sdec rlevve lieH.o cwna t ihbse ?
Imtu bstetah tteh riess o migent tahhctmo petCdi otieotnserh o pteirooatfneh c laclne
tetahrit ss m atrahtnweh arwt ed oO.ri ,onh te wro rtdehsri,ess o hmietntahgwt ed oio nu r
opteirtoaahnitsis ffn ieiceonwrta fus.ltI etnih sse twteni enteguod,s o eu r ttmooo ovles
tehf rimt owtaehfr rndot iiuleslrt irFnagi true1e1d .T. he fr onittsiehl e irtnah ietcln uadlels
becmnhakrstt oeh l owleetrftah ;it ns ofi, r imos u ttsehci rudrefe rnnottFi reoe rx.a map le,
prieumsmec rmevgi ithb aen imeploeromtofeau bnnrstut i nsettsreysasg,w o e m acyoh ose
nottco mo proomnsi escereAv. ni wdec uolhdva eat gaerttah tl ea9at0ps ceter nottfe h
inocmgic nlasl wbiesl elrw vhienti1d 0s eocnodlrs e sgsv.ie tnaBht tuga tter ,s ohwuel d
usoeuq ru anttiottoeaolnt ssi tuavhorteue lr a cbsootarsr a els o awps o sl,set aihitbts ah,t
wea rel eoaanttseh et ff iicecfynr toiner.
Introdu5c tion
FIUGRE 11.
LocIamplr ovemeRnetsp onsiveness
ofO perabtyi ons
Eliminating
Inffieciencies Hig__h
CompetAi tor
CurrFernotn tier
int hIen dtursy
Low
Low Labor HigLha bor LaborP roductivity
Productivity Productivit(ye. g$./,C all)
Thes ecounsode fo petriaomnasn agetmoeonltts ofi nitdsh rei gbhatl abnectew een our
compeotbijnegc htiigsvhee rsv,ai ncde low icssoi smtrit. low h aTahitiss sh oiwnFng iur12e. .
Ins ucash i tuawteni eoetndo,q uantthicefyo sotfws a itaiswn egl l caoss ottflsh a eba onrd
therne commtehmneod s ptr ofictoambplreob meitswete heents weoo jb ectives.
Movitnog ftrhoen tier oafn fiden ffdiitcnhirgeei ngschpytoo tnt hfreo ntaireseru rely
imporBtuaotnu tt.s tacnodmipnagdn oin eosst t otph eTrhete.h iursdfe o oru orp erations
FIUGRE1 .2
Trae-dobfeft weenR esponsiveness
LabPorro ductivity
anRde sponsiveness
High
ShorWtaeirt Tiinmge s
buMto rOep eraItdoTlrie m e
LongWeari tTiinmge s,
CurrPeonsti tion
YeOtp eraAtroMero sr e
on tFhreo ntier
FulUltyii zled
Low
LowL abor HigLha bor LaborP roductivity
Productivity Productivit(ey. g$./,C all)
