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About the Authors

BERNARD W. TAYLOR III is the Pamplin Professor of

Management Science and former Head of the Department of Business
Information Technology in the Pamplin College of Business at Virginia
Polytechnic Institute and State University. He received a Ph.D. and an
M.B.A. from the University of Georgia and a B.I.E. from the Georgia
Institute of Technology. He is the author of the book Introduction to
Management Science (13th ed.) and co-author of Management
Science (4th ed.), both published by Pearson. Dr. Taylor has published
over 80 articles in such journals as Operations Research,
Management Science, Decision Sciences, IIE Transactions, Journal of
the Operational Research Society, Computers and Operations
Research, Omega, and the International Journal of Production
Research, among others. His paper in Decision Sciences (with P. Y.
Huang and L. P. Rees) on the Japanese kanban production system
received the Stanley T. Hardy Award for its contribution to the field of
production and operations management. He has served as President of
the Decision Sciences Institute (DSI) as well as Program Chair,
Council Member, Vice President, Treasurer, and as the Editor of
Decision Line, the newsletter of DSI. He is a Fellow of DSI and a
recipient of their Distinguished Service Award. He is a former
President, Vice-President, and Program Chair of the Southeast
Decision Sciences Institute and a recipient of their Distinguished
Service Award. He teaches management science and production and
operations management courses at both the undergraduate and
graduate level. He has received the University Certificate of Teaching
Excellence on four occasions, the Pamplin College of Business
Certificate of Teaching Excellence Award, and the Pamplin College of
Business Ph.D. Teaching Excellence Award at Virginia Tech.
ROBERTA S. RUSSELL is Department Head and a Professor of
Business Information Technology in the Pamplin College of Business
at Virginia Polytechnic Institute and State University. She received a
Ph.D and a B.S. from Virginia Polytechnic Institute and State
University and an M.B.A. from Old Dominion University. Dr. Russell’s
primary research and teaching interests are in the areas of operations
and supply chain management, with special emphasis on
humanitarian and healthcare operations. She has published in Journal
of Operations Management, Decision Sciences, IIE Transactions,
International Journal of Production Research, IEEE Transactions,
Annals of Operations Research, and many others. She is also co-
author of the text Service Management and Operations. In 2016, she
received the Gyrna Award from the American Society of Quality (ASQ)
for research that has made “the largest single contribution to the
extension of understanding and knowledge in the philosophy,
principles, or methods of quality management.” Dr. Russell is a
member of DSI, ASQ, POMS, and IIE. She is past President of the
APICS Foundation, past Co-Chair of the Supply Chain Academic
Talent Initiative (SCTAI), a Certified Fellow in Production and
Inventory Management (CFPIM), and a Certified Supply Chain
Management Professional (CSCP). She is past Vice President of POMS,
past President of the Southwest Virginia Chapter of APICS, and has
held numerous offices in Southeast DSI. Her consulting experience
with IBM, AT&T, Dupont, Courtaulds, Xaloy, Newport News
Shipbuilding, and others brings a practical perspective into the
classroom. She has received the Pamplin College of Business
Certificate of Teaching Excellence on two occasions, the University
Certificate of Teaching Excellence, the Excellence in Diversity Award,
and the MBA Association’s Outstanding Professor Award. Dr. Russell
teaches both undergraduate and graduate students in the classroom
and online. She is frequently called upon to give workshops on
teaching with technology and has incorporated her experiences into
the ancillary material that accompanies this text.
Preface
Changes in the Tenth Edition
This new tenth edition is organized around the important and
prevalent topic of operations as the creation of value along the supply
chain. We describe how every chapter topic fits within a supply chain
framework in a company or organization in an increasingly global
operating environment. Two chapters deal directly with supply chain
management: Chapter 10, Supply Chain Management Strategy and
Design, and Chapter 11, Global Supply Chain Procurement and
Distribution. However, every chapter includes material relating the
chapter topics to supply chain management in a global operating
environment. In addition, Chapter 5, Service Design, reflects the
expanding presence and importance of the service sector in operations
management. We have also added new material throughout the book
on the increasingly important OM topics of sustainability, corporate
social responsibility, global trade policies, securing the supply chain,
and risk and resilience. To help us show how the OM topics in this new
edition fit together within a supply chain framework, we open each
chapter with a specific example about one product group, athletic
shoes. Athletic shoes are ideal to use as an example to introduce the
various operations and supply chain management topics in this text
because they are popular products that are familiar to our readers,
their supply chain is global, and their production process includes
technological and design innovations, as well as labor-intensive
manufacturing.
In addition to opening each chapter with an athletic shoes example,
this new edition also includes over 85 “Along the Supply Chain” boxes,
over 50% of which are new, that describe real-world business
applications of OM topics at companies around the world. Many of
these boxes focus on the increasingly important topics of social
responsibility and global supply chains. The boxes conclude with
critical-thinking questions that can be used for assignments and in-
class or online discussion. Chapter 1, Introduction to Operations and
Supply Chain Management, focuses on examples of excellence in
operations management, current issues in operations and supply chain
management, and the strategic design of operations and supply chain
management. Chapter 2, Quality Management, emphasizes the
necessity and use of quality management systems throughout the
supply chain and includes a section on ISO and its most recent
updates, including sustainability as part of a company’s quality
management system. Chapter 3, Statistical Process Control, introduces
statistical process control as essential to ensuring quality along the
supply chain.
Chapter 4 has sections on Design for the Environment and
Collaborative Product Design Systems. Chapter 5, Service Design,
incorporates new statistics on the service economy, the blending of
products and services, and service innovations. A streamlined waiting
line analysis section is also included in the chapter. Chapter 6,
Processes and Technology, emphasizes process analysis skills and
includes revised material on the Internet of Things, 3D printing,
blockchain and other new technologies. Chapter 7, Capacity and
Facilities Design, incorporates strategies for capacity management,
facility selection and design, green facilities, and examples of various
service layouts.
Chapter 8, Human Resources, has an increased emphasis on
sustainability in the workplace, especially among global suppliers of
U.S. companies, as well as increased attention to employee cultural
and diversity issues. Chapter 9, Project Management, has an increased
focus on cultural and diversity issues in the management of global
projects, several “Along the Supply Chain” boxes related to
sustainability projects, plus sections on project risk and how to
manage it. Chapter 10, Supply Chain Management Strategy and
Design, has a section on risk and resilience in global supply chains,
increased attention to global sustainability issues, and an updated
section on SCOR. This chapter also includes two new sections on
blockchain and the Internet of Things and how these recent
innovations impact supply chain management. Chapter 11, Global
Supply Chain Procurement and Distribution, addresses spend
analysis, global logistics, and additional issues in sustainability.
Chapter 12, Forecasting, includes a section on the increasingly
important IT topic of data mining. Chapter 13, Inventory
Management, emphasizes its important role in controlling costs along
a global supply chain.
Chapter 14 emphasizes the need for effective Sales and Operations
Planning and includes a section on Revenue Management. Chapter 15,
Resource Planning, updates resource planning with discussions of
cloud computing, in-memory computing, algorithmic decision making,
and advanced analytics. Chapter 16 expands Lean Systems to lean
services, including lean supply chain and lean and the environment.
Chapter 17, Scheduling, incorporates employee scheduling, artificial
intelligence, and theory of constraints, along with traditional
scheduling methods.
In addition to this new topical coverage, this edition also includes
exhibits in every chapter reflecting the latest versions of Excel, OM
Tools, and Microsoft Project. Excel, OM Tools, or MS Project files of
every exhibit in the text are available to instructors and students on
the text website. For instructors, a printable Solutions Manual in
Word is supplemented with Excel or Microsoft Project files for
virtually every problem and case in the text. A digital Instructors
Resource Manual outlines each chapter and provides additional
examples to be used in class, along with teaching tips, video
suggestions, questions for class discussions, and experiential exercises.
Additional online material includes Virtual Tours, Internet Exercises,
YouTube videos, Practice Quizzes, and Weblinks to companies and
topics discussed in each chapter.

Major Text Themes

Operations Strategy: Creating Value Along the
Supply Chain
A company’s plan for being competitive is its strategy. The success of a
strategic plan is largely determined by how well a company
coordinates all of its internal processes, including operations, with its
suppliers and customers to produce products and services that provide
value. Throughout this book, we try to show how the functions and
processes described in each chapter fit into a company’s strategic
design for the creation of value. In each chapter, we emphasize the
need for considering the overall strategic implications of operating
decisions.
One way in which companies can gain a competitive edge is by
deploying the basic functions of operations management in a more
effective manner than their rivals, for example, building a better
supply chain. Therefore, we give literally dozens of examples that
explain how companies deploy specific operations functions along
their supply chain to provide value and make them successful.
Throughout the book, “Along the Supply Chain” boxes describe how
successful companies have gained a competitive edge through
operations.

Focusing on Athletic Shoes

Every edition of this text has focused on one product group as a
continuing story for the introduction to each chapter topic. These
introductory product themes for previous editions have included rice,
coffee, chocolate, denim jeans (and thus textiles and apparel), and
electronics (smartphones). They all have a global supply chain in
common. For this tenth edition, we focus on athletic shoes and the
industry that supports it. Athletic shoes is an interesting, diverse
industry that includes innovative designs, contract manufacturing,
and low-tech manual labor operations, as well as next-generation
robotics and a global supply chain. The athletic shoes industry is very
competitive, fast moving, and challenging—the type of energy and
environment that college students enjoy.

Global Operations
Companies and organizations today must increasingly compete in a
global marketplace. The establishment of new trade agreements
between countries and the dissolution of old ones, innovations in
information technology, and improvements in transport and shipping
are just a few of the factors that have enabled companies to develop
global supply chains. The opening of the global marketplace has only
served to introduce more competitors and make competition tougher,
thus making strategic supply chain design even more important for
achieving success. In this edition, we introduce this global aspect of
operations into every chapter. In each chapter, we include examples
that touch on the impact of global operations relative to the topic
under discussion, and we discuss how globalization affects supply
chain management.

Sustainability
Environmental concerns are changing every aspect of operations and
supply chain management from product and service design, to
supplier sourcing, to manufacture and delivery. In virtually every
chapter of this text, we have expanded our discussion of the impact of
“sustainability” (i.e., meeting present needs without sacrificing future
resources) and give examples of “green practices.” For example, in
Chapter 4 on product design, we discuss the design for environment
lifecycle, eco-labeling, recycling and reuse, and sustainable operations.
In Chapter 6 on processes, we discuss green manufacturing; and in
Chapter 7 on facilities, we discuss LEED-certified green buildings. In
Chapter 8, we discuss how companies achieve a sustainable workplace
when they have suppliers around the world. Chapter 9 (as well as most
other chapters) includes several new “Along the Supply Chain” boxes
describing sustainability projects. In Chapter 10 on supply chain
management, we discuss sustainable sourcing in a global
environment; and in Chapter 16 on lean systems, we discuss lean and
the environment.

Services and Manufacturing

We have attempted to strike a balance between manufacturing and
service operations in this book. Traditionally, operations and supply
chain management were thought of almost exclusively in a
manufacturing context. However, in the United States and other
industrialized nations, there has been a dramatic shift toward service
industries. Thus, managing service operations is an important area of
study. In many cases, operations and supply chain management
processes and techniques are indistinguishable between service and
manufacturing. However, in many other instances, service operations
present unique situations and problems that require focused attention
and unique solutions. We have tried to reflect the uniqueness of
service operations by providing focused discussions on service
operations throughout the text. For example, in Chapter 2 on quality
management, we specifically address the importance of quality
management in service companies; in Chapter 5 on Service Design, we
emphasize the differences in design considerations between
manufacturing and services; and in Chapter 14, we discuss aggregate
planning in services. One type of service examined in virtually every
chapter in the book is healthcare.

Qualitative and Quantitative Processes

We have attempted to strike a balance between the qualitative (or
managerial) aspects of operations management and the quantitative
aspects. In the contemporary world of operations management, the
quantitative and technological aspects are probably more important
than ever. The ability to manage people and resources effectively, to
motivate, organize, control, evaluate, and adapt to change, have
become critical to competing in today’s global markets. Thus,
throughout this book, we seek to explain and clearly demonstrate how
the successful operations manager manages, and how to use
quantitative techniques and technology when they are applicable.
However, we attempt to present these quantitative topics in a way
that’s not overly complex or mathematically intimidating. Above all,
we want to show how the quantitative topics fit in with, and
complement, the qualitative aspects of operations management. We
want you to be able to see both “the forest and the trees.”

Teaching and Learning

Support Features
This text is accompanied by many features and supplements both in
the text and online for students and instructors. Operations and
Supply Chain Management, 10th Edition, is supported by a
comprehensive learning package that assists the instructor in creating
a motivating and enthusiastic environment.

Pedagogy in the Textbook

Chapter Introductions
A key feature of each new edition is the use of a specific product
industry to introduce the topics in each chapter; for this edition this
product is athletic shoes. These introductions focusing on a single
product enable us to provide a continuous “story” throughout the book
that tie all of the chapter topics together. As examples, in Chapter 2
(Quality Management), the chapter introduction titled “Quality and
Value in Athletic Shoes,” discusses the importance of quality for
companies like Nike and Adidas in gaining a competitive edge; the
Chapter 9 (Project Management) introduction discusses “Innovative
Sustainable Projects in the Athletic Shoe Industry;” while the Chapter
10 (Supply Chain Management Strategy and Design) introduction
discusses “Athletic Shoe Supply Chain Strategy at Nike.”

“Along the Supply Chain” Boxes

These boxes are located in every chapter in the text. They describe the
application of operations in a real-world company, organization, or
agency related to specific topics in each chapter. They emphasize how
companies effectively compete with operations management in the
global marketplace. The descriptions of operations at actual
companies in these boxes help the student understand how specific
OM techniques and concepts are used by companies; this also makes
the topics and concepts easier to understand. In addition, we have
added discussion questions to these boxes to help students and
teachers “connect” the example to the chapter topics. A significant
number of these boxes provide real-world examples of sustainability,
global supply chains, and innovations like the Internet of Things.

OM Dialogue Boxes
These boxes include dialogues with recent college business school
graduates who are working in operations management in the real
world. They describe how they apply various OM topics in the text in
their own jobs and the value of their own OM training in college. This
provides students with a perspective on the benefit of studying
operations management now and its future benefit.

Examples
The primary means of teaching the various quantitative topics in this
text is through examples. These examples are liberally distributed
throughout the text to demonstrate how problems are solved in a
clear, straightforward approach to make them easier to understand.

Solved Problems
At the end of each chapter, just prior to the homework questions and
problems, there is a section with solved examples to serve as a guide
for working the homework problems. These examples are solved in a
detailed, step-by-step manner.

Summary of Key Formulas

These summaries at the end of each chapter and supplement include
all of the key quantitative formulas introduced in the chapter in one
location for easy reference.

Summary of Key Terms

Located at the end of each chapter, these summaries provide a list of
key terms introduced in that chapter and their definitions in one
convenient location for quick and easy reference.

Homework Problems, Questions, and Cases

Our text contains a large number of end-of-chapter exercises for
student assignments. There are over 650 homework problems and 56
more advanced case problems. There are also 500 discussion
questions including new questions. Answers to selected odd-
numbered homework problems are included in the back of the book.
As we mention in the following “Online Resources for Instructors”
section, Excel spreadsheet solution files are available to the instructor
for the majority of the end-of-chapter problems and cases.

Online Resources for Instructors

https://www.wiley.com/en-
us/Operations+and+Supply+Chain+Management%2C+10th+Edition-
p-9781119577645
Instructor’s Manual The Instructor’s Manual, updated by the
authors, features chapter outlines, teaching notes, experiential
exercises, alternate examples to those provided in the text, pause and
reflect questions for classroom discussion, and suggested online videos
to use in class or assign for homework.
Test Bank Fully revised from the previous edition, this test bank
consists of true/false, multiple-choice, short answer, and essay
questions. All questions have been carefully accuracy-checked to
ensure the highest quality of materials for our customers. The
questions are also available electronically on the textbook support site.
The Computerized Test Bank, for use on a PC running Windows, is
from a test-generating program that allows instructors to modify and
add questions in order to customize their exams.
PowerPoint Presentation Slides The PowerPoint presentation
slides include outlines for every chapter, exhibits from the text, and
additional examples, providing instructors with a number of learning
opportunities for students. The PowerPoint slides can be accessed in
WileyPLUS under Instructor Resources, and on the instructor’s
portion of the 10th edition website. Lecture notes accompany each
slide.
Solutions Manual The Solutions Manual, updated by the authors,
features detailed answers to end-of-chapter questions, homework
problems, and case problems.
Excel Homework Solutions and Excel Exhibit Files This new
edition includes almost 700 homework problems and 56 case
problems. Excel solution files for the instructor are provided in the
course for the majority of these problems. In addition, Microsoft
Project solution files are provided for most of the homework problems
in Chapter 9 (Project Management). Excel worksheets for class
handouts or homework assignments are provided for QFD, process
flow charts, MRP matrices, and others. Excel exhibit files for every
example in the text solved with Excel are provided as templates for
solving similar problems for both student and instructor and are
available on the text website.
Web Quizzes These online quizzes vary in level of difficulty and are
designed to help your students evaluate their individual progress
through a chapter. Web quizzes are available on the student portion of
the website. Here, students will have the ability to test themselves with
15–20 questions per chapter that include true-false and multiple
choice questions.
OM Tools OM Tools is an Excel add-in designed to accompany the
Russell/Taylor, Operations and Supply Chain Management, 10th
edition text. The software consists of 18 modules with over 60 problem
types. OM Tools is easy to use and interpret, and is accompanied by a
help file with text references. A new and updated version of OM Tools
is available for this edition of the text.
OM Skills Videos This resource is a collection of videos done by
students that provide excellent examples of the concepts illustrated in
the text. These videos can be accessed in WileyPLUS.
Darden Business Cases Darden Business Publishing Cases
delivered through the Wiley Custom Select website
www.customselect.wiley.com.
Marketplace Operations Management Simulation Empowers
students to make real-world decisions and apply what they learn in the
classroom. www.marketplace-simulation.com
Data Analytics & Business Module With the emergence of Data
Analytics transforming the business environment, Wiley has partnered
with business leaders in the Business-Higher Education Forum
(BHEF) to identify the competencies graduates need to be successful
in their careers. As a result, WileyPLUS includes a new data analytics
module with industry-validated content that prepares operations
management students for a changing workforce.
Real-World Video Activities A new feature in WileyPLUS offers
chapter-level graded analysis activities on cutting-edge business video
content from Bloomberg.
Acknowledgments
The writing and revision of a textbook, like any large project, requires
the help and creative energy of many people, and this is certainly not
the exception. We especially appreciate the confidence, support, help,
and friendship of our editor at Wiley. We also thank the Wiley staff
members who helped with our book, including:
Alden Farrar, Associate Editor; Lindsey Myers, Instructional Designer;
Jenny Geiler, Marketing Manager; Valerie Vargas, Production Editor;
and numerous other people who work behind the scenes to whom we
never saw or spoke. We are indebted to the reviewers of the text
including: Robert Donnelly; Robert Aboolian, California State
University San Marcos; Ajay Aggarwal, Millsaps College; Fred
Anderson, Indiana University of Pennsylvania; Beni Asllani,
University of Tennessee Chattanooga; Anteneh Ayanso, University of
Connecticut, Storrs; Brent Bandy, University of Wisconsin, Oshkosh;
Joe Biggs, California Polytechnic State University; Tom Bramorski,
University of Wisconsin, Whitewater; Kimball Bullington, Middle
Tennessee State University; Cem Canel, University of North Carolina,
Wilmington; Janice Cerveny, Florida Atlantic University; Robert
Clark, SUNY Stony Brook; Ajay Das, Baruch College CUNY; Kathy
Dhanda, University of Portland; Susan Emens, Kent State University;
Yee Fok, University of New Orleans; Phillip Fry, Boise State
University; Mark Gershon, Temple University; Robert Greve,
Oklahoma State University; Robert Frese, Maryville University; Jay
Jayaram, University of South Carolina, Columbia; Vaidy Jayaraman,
University of Miami; Serge Karalli, DePaul University; William Kime,
University of New Mexico; Peter Klein, Ohio University; Howard
Kraye, University of New Mexico, Albuquerque; John Kros, East
Carolina University; Gopalan Kutty, Mansfield University; Bingguang
Li, Albany State University; Royce Lorentz, Slippery Rock University;
Sheldon Lou, California State University, San Marcos; Ken Mannino,
Milwaukee School of Engineering; Lance Matheson, Virgina Tech;
Duncan McDougall, Plymouth State University; Jaideep Motwani,
Grand Valley State University; Hilary Moyes, University of Pittsburgh;
Barin Nag, Towson University; Ozgur Ozluk, San Francisco State
University; Amer Qureshi, University of Texas Arlington; Jim
Robison, Sonoma State University; Raj Selladurai, Indiana University
Northwest; Robert Setaputro, University of Wisconsin, Milwaukee;
Jacob Simons, Georgia Southern University; Marilyn Smith, Winthrop
University; Donna Stewart, University of Wisconsin, Stout; Donald
Stout, St. Martin’s College; Dothang Truong, Fayetteville State
University; Elizabeth Trybus, California State University, Northridge;
Ray Vankataraman, Pennsylvania State University, Erie; Timothy
Vaughan, University of Wisconsin, Eau Claire; Mark Vrobelfski,
University of Arizona; Gustavo Vulcano, New York University; Kevin
Watson, University of New Orleans; Michel Whittenberg, University of
Texas, Arlington; Hulya Yazici, University of Wisconsin, La Crosse;
Jinfeng Yue, Middle Tennessee State University; and Xiaoqun Zhang,
Pennsylvania State University, Harrisburg. We also thank the
reviewers of the sixth edition, including: Ajay Aggarwal, Millsaps
College; Binguang Li, Albany State University; Christina McCart,
Roanoke College; Cuneyt Altinoz, East Carolina University; Dana
Johnson, Michigan Technical University; David Frantz, Indiana
University; Donald Stout, St. Martin’s University; Doug Hales,
University of Rhode Island; Drew Stapleton, University of Wisconsin,
LaCrosse; Fataneh Taghaboni-Dutta, University of Michigan, Flint;
Ike Ehie, Kansas State University; John Hebert, University of Akron;
John Kros, East Carolina University; Kaushik Sengupta, Hofstra
University; Larry White, Eastern Illinois University; Lewis
Coopersmith, Rider University; Mohammad Sedaghat, Fairleigh
Dickinson University; Morgan Henrie, University of Alaska,
Anchorage; Phil Fry, Boise State University; Robert Aboolian,
California State University, San Marcos; Robert Clark, SUNY, Stony
Brook; Scott Hedin, Gonzaga University; Susan Emens, Kent State
University, Trumbull; Tom Wilder, California State University, Chico;
Zhiwei Zhu, University of Louisiana, Lafayette.
They contributed numerous suggestions, comments, and ideas that
dramatically improved and changed this book over several editions.
We offer our sincere thanks to these colleagues and hope that they can
take some satisfaction in their contribution to our final product. We
wish to thank our students who have class-tested, critiqued, and
contributed to the first nine editions and this tenth edition from a
consumer’s point of view. We thank colleagues Michelle Seref, Virginia
Tech, for creating a new version of OM Tools; Laura Clark, Virginia
Tech, for her help with WileyPLUS; Ronny Richardson, Southern
Polytechnic State University, who accuracy checked all of the
supplements for this text. We are especially grateful to Tracy McCoy at
Virginia Tech for her unstinting help, hard work, and patience.
R.S.R and B.W.T
CONTENTS
Cover
About the Authors
Preface
CHAPTER 1: Introduction to Operations and Supply Chain
Management
Run Faster, Jump Higher
The Operations Function
The Evolution of Operations and Supply Chain Management
Globalization
Productivity and Competitiveness
Strategy and Operations
Organization of This Text
Learning Objectives of This Course
Summary
Key Terms
Questions
Problems
Case Problems
References
SUPPLEMENT TO CHAPTER 1: Operational Decision-Making
Tools: Decision Analysis
Decision Analysis With and Without Probabilities
Summary
Key Terms
Key Formulas
Solved Problems
Problems
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