Production and Operations Analysis

840 Pages·2015·21.79 MB·English

by  Steven Nahmias

Inventory Levels for the EOQ Model
)
)
(t
Iy (
or
nt
e
v
In Slope=–(cid:31)
Q
T Time t
All-units discount average annual cost function
240
230
)
Q
G(
220 G0(Q)
G (Q)
1
210
G (Q)
2
200
190
180
100 200 300 400 500 600 700 800 9001,000 1,100 1,200
Q
Changes in Inventory Over Time for Continuous-review (Q, R) System
y
or
nt
e
v R
n
I
Q
(cid:31)
Order Order Time
placed arrives
Nahmias-Olsen FrontMatter.fm Page 1 Tuesday, December 30, 2014 10:01 AM
SEVENTH EDITION
PRODUCTION AND
Operations Analysis
….
Nahmias-Olsen FrontMatter.fm Page 2 Tuesday, December 30, 2014 10:01 AM
SEVENTH EDITION
PRODUCTION
AND
Operations Analysis
S T R A T E G Y • Q U A L I T Y (cid:129) A N A L Y T I C S (cid:129) A P P L I C A T I O N
Steven Nahmias
Santa Clara University
Tava Lennon Olsen
University of Auckland
WAVELAND
PRESS, INC.
Long Grove, Illinois
Nahmias-Olsen FrontMatter.fm Page 3 Tuesday, December 30, 2014 10:01 AM
For information about this book, contact:
Waveland Press, Inc.
4180 IL Route 83, Suite 101
Long Grove, IL 60047-9580
[phone]
[email protected]
www.waveland.com
Copyright © 2015 by Steven Nahmias and Tava Lennon Olsen
10-digit ISBN 1-4786-2306-3
13-digit ISBN 978-1-4786-2306-9
All rights reserved. No part of this book may be reproduced, stored in a retrieval sys-
tem, or transmitted in any form or by any means without permission in writing from
the publisher.
Printed in the United States of America
7 6 5 4 3 2 1
nah77856_fm.qxd 7/23/12 8:41 AM Page iv
I dedicate this seventh edition to my lucky seven,
Library of Congress Cataloging-in-Publication Data my beautiful wife Vivian, whose birthday falls on
Nahmias, Steven. the seventh of February.
Production and operations analysis / Steven Nahmias. -- 7th ed.
p. cm. — Steven Nahmias
Includes index.
ISBN-13: 978-1-935938-25-5
To my family.
1. Production management. I. Title.
Tava Lennon Olsen
Cover Image:(c) Brand X Pictures / www.fotosearch.com
Copyright © 2012 by Wohl Publishing, Inc., Morristown, NJ 07960. All rights reserved.
Printed in the United States of America. This publication is protected by Copyright and
permission should be obtained from the publisher prior to any prohibited reproduction, storage
in a retrieval system, or transmission in any form or by any means, electronic, mechanical,
photocopying, recording, or likewise. For information regarding permission(s), write to us at:
Wohl Publishing, Inc.
45 S Park Place #223
Morristown NJ 07960
12345678910
ISBN: 978-1-935938-25-5
nah77856_fm_new.indd 5 18/12/14 10:21 PM
Brief Contents
About the Author xv 7 Service Operations Management 367
Preface xvi Supplement 2 Queueing Techniques 417
Introduction xvii 8 Push and Pull Production Control
Systems: MRP and JIT 437
1 Strategy and Competition 1 9 Operations Scheduling 490
10 Project Scheduling 543
2 Forecasting 52
11 Facilities Layout and Location 593
3 Sales and Operations Planning 128
12 Quality and Assurance 666
Supplement 1 Linear Programming 169
13 Reliability and Maintainability 742
4 Inventory Control Subject to Known
Demand 198
5 Inventory Control Subject to Uncertain
Appendix: TAbles 796
Demand 249
6 Supply Chain Management 315 index 814
vi
nah77856_fm_new.indd 6 18/12/14 10:21 PM
Contents
About the Author xv 1.11 Capacity Growth Planning: A Long-Term
Strategic Problem 38
Preface xvi
Economies of Scale and Economies of Scope 38
Introduction xvii Make or Buy: A Prototype Capacity Expansion
Problem 39
Chapter 1 Dynamic Capacity Expansion Policy 40
Strategy and Competition 1 Issues in Plant Location 44
Problems for Section 1.11 46
Chapter Overview 1 1.12 Summary 47
Snapshot Application: Apple Adopts a New
Additional Problems for Chapter 1 48
Business Strategy and Shifts Its Core Appendix 1–A Present Worth Calculations 50
Competency from Computers to Portable Bibliography 51
Electronics 3
1.1 Manufacturing Matters 5 Chapter 2
Manufacturing Jobs Outlook 7 Forecasting 52
1.2 A Framework for Operations Strategy 8
Strategic Dimensions 9 Chapter Overview 52
1.3 Competing in the Global Marketplace 10 2.1 The Time Horizon in Forecasting 55
Snapshot Application: Global Manufacturing 2.2 Characteristics of Forecasts 56
Strategies in the Automobile Industry 13 2.3 Subjective Forecasting Methods 57
Problems for Sections 1.1–1.3 13 2.4 Objective Forecasting Methods 58
1.4 Strategic Initiatives: Reengineering the Causal Models 58
Business Process 14 Time Series Methods 59
1.5 Strategic Initiatives: Just-in-Time 17 Snapshot Application: Advanced Forecasting,
1.6 Strategic Initiatives: Time-Based Inc., Serves The Semiconductor Industry 60
Competition 19 Problems for Sections 2.1–2.4 60
1.7 Strategic Initiatives: Competing on 2.5 Notation Conventions 62
Quality 20 2.6 Evaluating Forecasts 62
Problems for Sections 1.4–1.7 22 Problems for Section 2.6 64
1.8 Strategic Initiatives: Servicization 23 Snapshot Application: Pfizer Bets Big on
Servicization: Moving Downstream 23 Forecasts of Drug Sales 65
The IBM Story 24 2.7 Methods for Forecasting Stationary Series 66
Performance Based Contracts 25 Moving Averages 66
Leasing Versus Buying 25 Problems on Moving Averages 69
Green Leasing 26 Exponential Smoothing 69
Problems for Section 1.8 27 Multiple-Step-Ahead Forecasts 73
1.9 Matching Process and Product Life Cycles 27 Comparison of Exponential Smoothing and
The Product Life Cycle 27 Moving Averages 74
The Process Life Cycle 28 Problems for Section 2.7 75
The Product–Process Matrix 29 Snapshot Application: Sport obermeyer slashes
Problems for Section 1.9 31 costs with improved forecasting 76
1.10 Learning and Experience Curves 31 2.8 Trend-Based Methods 77
Learning Curves 32 Regression Analysis 77
Experience Curves 34 Problems for Section 2.8 78
Learning and Experience Curves and Double Exponential Smoothing Using Holt’s
Manufacturing Strategy 36 Method 79
Problems for Section 1.10 36 More Problems for Section 2.8 80
vii
nah77856_fm_new.indd 7 18/12/14 10:21 PM