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Operations Management 14Th Ed 14Th Edition Stevenson Full Chapter
Operations Management 14Th Ed 14Th Edition Stevenson Full Chapter
Edition Stevenson
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Operations Management
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Operations Management
FOURTEENTH EDITION
William J. Stevenson
Saunders College of Business
Rochester Institute of Technology
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OPERATIONS MANAGEMENT
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121.
Copyright © 2021 by McGraw-Hill Education. All rights reserved. Printed in the
United States of America. No part of this publication may be reproduced or
distributed in any form or by any means, or stored in a database or retrieval
system, without the prior written consent of McGraw-Hill Education, including,
but not limited to, in any network or other electronic storage or transmission, or
broadcast for distance learning.
1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 20
ISBN 978-1260-57571-2
MHID 1-260-57571-3
All credits appearing on page or at the end of the book are considered to be an
extension of the copyright page.
The internet addresses listed in the text were accurate at the time of
publication. The inclusion of a website does not indicate an endorsement by the
authors or McGraw-Hill Education, and McGraw-Hill Education does not
guarantee the accuracy of the information presented at these sites.
mheducation.com/highered
page v
Supply Management
Eighth Edition
Johnson
Project Management
Brown and Hyer
Managing Projects: A Team-Based Approach Larson
Project Management: The Managerial Process Eighth
Edition
Service Operations
Management
Bordoloi, Fitzsimmons, and
Fitzsimmons
Service Management: Operations, Strategy,
Information Technology Ninth Edition
Management Science
Hillier and Hillier
Introduction to Management Science: A Modeling and
Case Studies Approach with Spreadsheets Sixth Edition
Business Forecasting
Keating and Wilson
Operations Management
Cachon and Terwiesch
Operations Management
Second Edition
Cachon and Terwiesch
Matching Supply with Demand: An Introduction to
Operations Management Fourth Edition
Operations Management
Fourteenth Edition
Swink, Melnyk, and Hartley
Managing Operations Across the Supply Chain Fourth
Edition
Business Statistics
Bowerman, Drougas, Duckworth, Froelich, Hummel,
Moninger, and Schur Business Statistics and Analytics
in Practice Ninth Edition
McGuckian
Connect Master: Business Statistics
Business Analytics
Jaggia, Kelly, Lertwachara, and Chen
Business Analytics: Communicating with Numbers
page vi
Preface page vii
Acknowledgments
I want to thank the many contributors to this edition.
Reviewers and adopters of the text have provided a
“continuously improving” wealth of ideas and suggestions. It
is encouraging to me as an author. I hope all reviewers and
readers will know their suggestions were valuable, were
carefully considered, and are sincerely appreciated. The list
includes post-publication reviewers.
page viii
Finally, I would like to thank all the people at
McGraw-Hill for their efforts and support. It is always a
pleasure to work with such a professional and competent
group of people. Special thanks go to Noelle Bathurst,
Portfolio Manager; Michele Janicek, Lead Product Developer;
Fran Simon and Katie Ward, Product Developers; Jamie Koch,
Assessment Content Project Manager; Sandy Ludovissy,
Buyer; Matt Diamond, Designer; Jacob Sullivan, Content
Licensing Specialist; Harper Christopher, Executive
Marketing Manager; and many others who worked behind
the scenes.
I would also like to thank the many reviewers of previous
editions for their contributions: Vikas Agrawal, Fayetteville
State University; Bahram Alidaee, University of Mississippi;
Ardavan Asef-Faziri, California State University at
Northridge; Prabir Bagchi, George Washington State
University; Gordon F. Bagot, California State University at
Los Angeles; Ravi Behara, Florida Atlantic University;
Michael Bendixen, Nova Southeastern; Ednilson Bernardes,
Georgia Southern University; Prashanth N. Bharadwaj,
Indiana University of Pennsylvania; Greg Bier, University of
Missouri at Columbia; Joseph Biggs, Cal Poly State
University; Kimball Bullington, Middle Tennessee State
University; Alan Cannon, University of Texas at Arlington;
Injazz Chen, Cleveland State University; Alan Chow,
University of Southern Alabama at Mobile; Chrwan-Jyh,
Oklahoma State University; Chen Chung, University of
Kentucky; Robert Clark, Stony Brook University; Loretta
Cochran, Arkansas Tech University; Lewis Coopersmith,
Rider University; Richard Crandall, Appalachian State
University; Dinesh Dave, Appalachian State University; Scott
Dellana, East Carolina University; Kathy Dhanda, DePaul
University; Xin Ding, University of Utah; Ellen Dumond,
California State University at Fullerton; Richard Ehrhardt,
University of North Carolina at Greensboro; Kurt Engemann,
Iona College; Diane Ervin, DeVry University; Farzaneh Fazel,
Illinois State University; Wanda Fennell, University of
Mississippi at Hattiesburg; Joy Field, Boston College; Warren
Fisher, Stephen F. Austin State University; Lillian Fok,
University of New Orleans; Charles Foley, Columbus State
Community College; Matthew W. Ford, Northern Kentucky
University; Phillip C. Fry, Boise State University; Charles A.
Gates Jr., Aurora University; Tom Gattiker, Boise State
University; Damodar Golhar, Western Michigan University;
Robert Graham, Jacksonville State University; Angappa
Gunasekaran, University of Massachusetts at Dartmouth;
Haresh Gurnani, University of Miami; Terry Harrison, Penn
State University; Vishwanath Hegde, California State
University at East Bay; Craig Hill, Georgia State University;
Jim Ho, University of Illinois at Chicago; Seong Hyun Nam,
University of North Dakota; Jonatan Jelen, Mercy College;
Prafulla Joglekar, LaSalle University; Vijay Kannan, Utah
State University; Sunder Kekre, Carnegie-Mellon University;
Jim Keyes, University of Wisconsin at Stout; Seung-Lae Kim,
Drexel University; Beate Klingenberg, Marist College; John
Kros, East Carolina University; Vinod Lall, Minnesota State
University at Moorhead; Kenneth Lawrence, New Jersey
Institute of Technology; Jooh Lee, Rowan University; Anita
Lee-Post, University of Kentucky; Karen Lewis, University of
Mississippi; Bingguang Li, Albany State University; Cheng Li,
California State University at Los Angeles; Maureen P. Lojo,
California State University at Sacramento; F. Victor Lu, St.
John’s University; Janet Lyons, Utah State University; James
Maddox, Friends University; Gita Mathur, San Jose State
University; Mark McComb, Mississippi College; George
Mechling, Western Carolina University; Scott Metlen,
University of Idaho; Douglas Micklich, Illinois State
University; Ajay Mishra, SUNY at Binghamton; Scott S.
Morris, Southern Nazarene University; Philip F. Musa,
University of Alabama at Birmingham; Roy Nersesian,
Monmouth University; Jeffrey Ohlmann, University of Iowa at
Iowa City; John Olson, University of St. Thomas; Ozgur
Ozluk, San Francisco State University; Kenneth Paetsch,
Cleveland State University; Taeho Park, San Jose State
University; Allison Pearson, Mississippi State University;
Patrick Penfield, Syracuse University; Steve Peng, California
State University at Hayward; Richard Peschke, Minnesota
State University at Moorhead; Andru Peters, San Jose State
University; Charles Phillips, Mississippi State University;
Frank Pianki, Anderson University; Sharma Pillutla, Towson
University; Zinovy Radovilsky, California State University at
Hayward; Stephen A. Raper, University of Missouri at Rolla;
Pedro Reyes, Baylor University; Buddhadev Roychoudhury,
Minnesota State University at Mankato; Narendra Rustagi,
Howard University; Herb Schiller, Stony Brook University;
Dean T. Scott, DeVry University; Scott J. Seipel, Middle
Tennessee State University; Raj Selladurai, Indiana
University; Kaushic Sengupta, Hofstra University; Kenneth
Shaw, Oregon State University; Dooyoung Shin, Minnesota
State University at Mankato; Michael Shurden, Lander
University; Raymond E. Simko, Myers University; John
Simon, Governors State University; Jake Simons, Georgia
Southern University; Charles Smith, Virginia Commonwealth
University; Kenneth Solheim, DeVry University; Young Son,
Bernard M. Baruch College; Victor Sower, Sam Houston
State University; Jeremy Stafford, University of North
Alabama; Donna Stewart, University of Wisconsin at Stout;
Dothang Truong, Fayetteville State University; Mike Umble,
Baylor University; Javad Varzandeh, California State
University at San Bernardino; Timothy Vaughan, University
of Wisconsin at Eau Claire; Emre Veral, Baruch page ix
College; Mark Vroblefski, University of Arizona;
Gustavo Vulcano, New York University; Walter Wallace,
Georgia State University; James Walters, Ball State
University; John Wang, Montclair State University; Tekle
Wanorie, Northwest Missouri State University; Jerry Wei,
University of Notre Dame; Michael Whittenberg, University
of Texas; Geoff Willis, University of Central Oklahoma;
Pamela Zelbst, Sam Houston State University; Jiawei Zhang,
NYU; Zhenying Zhao, University of Maryland; Yong-Pin Zhou,
University of Washington.
William J. Stevenson
Walkthrough page x
page xi
CHAPTER ELEMENTS
Within each chapter, you will find the following
elements that are designed to facilitate study and
learning. All of these have been carefully developed
over many editions and have proven to be successful.
Learning Objectives
Every chapter and supplement lists the learning objectives to
achieve when studying the chapter material. The learning
objectives are also included next to the specific material in
the margins of the text.
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Chapter Outlines
Every chapter and supplement includes an outline of the
topics covered.
Opening Vignettes
Each chapter opens with an introduction to the important
operations topics covered in the chapter. This enables
students to see the relevance of operations management in
order to actively engage in learning the material.
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Readings
Readings highlight important real-world applications, provide
examples of production/operations issues, and offer further
elaboration of the text material. They also provide a basis for
classroom discussion and generate interest in the subject
matter. Many of the end-of-chapter readings include
assignment questions.
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Key Terms
Key terms are highlighted in the text and then repeated in th
margin with brief definitions for emphasis. They are listed at
the end of each chapter (along with page references) to aid i
reviewing.
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Problem Sets
Each chapter includes a set of problems for assignment. The
problems have been refined over many editions and are
intended to be challenging but doable for students. Short
answers to most of the problems are included in Appendix A
so students can check their understanding and see
immediately how they are progressing.
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Cases
The text includes short cases. The cases were selected to
provide a broader, more integrated thinking opportunity for
students without taking a full case approach.
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FOR INSTRUCTORS
You’re in the driver’s seat.
Want to build your own course? No problem. Prefer to
use our turnkey, prebuilt course? Easy. Want to make
changes throughout the semester? Sure. And you’ll
save time with Connect’s auto-grading too.
page xix
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FOR STUDENTS
Effective, efficient studying.
Connect helps you be more productive with your
study time and get better grades using tools like
SmartBook 2.0, which highlights key concepts and
creates a personalized study plan. Connect sets you
up for success, so you walk into class with confidence
and walk out with better grades.
No surprises.
The Connect Calendar and Reports tools keep you on
track with the work you need to get done and your
assignment scores. Life gets busy; Connect tools help
you keep learning through it all.
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Calendar: owattaphotos/Getty Images
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Top: Jenner Images/Getty Images, Left: Hero Images/Getty Images, Right: Hero
Images/Getty Images
Note to Students page xx
The material in this text is part of the core knowledge in
your education. Consequently, you will derive considerable
benefit from your study of operations management,
regardless of your major. Practically speaking, operations is
a course in management.
This book describes principles and concepts of operations
management. You should be aware that many of these
principles and concepts are applicable to other aspects of
your professional and personal life. You can expect the
benefits of your study of operations management to serve
you in those other areas as well.
Some students approach this course with apprehension,
and perhaps even some negative feelings. It may be that
they have heard that the course contains a certain amount
of quantitative material that they feel uncomfortable with,
or that the subject matter is dreary, or that the course is
about “factory management.” This is unfortunate, because
the subject matter of this book is interesting and vital for all
business students. While it is true that some of the material
is quantitative, numerous examples, solved problems, and
answers at the back of the book help with the quantitative
material. As for “factory management,” there is material on
manufacturing, as well as on services. Manufacturing is
important, and something that you should know about for a
number of reasons. Look around you. Most of the “things”
you see were manufactured: cars, trucks, planes, clothing,
shoes, computers, books, pens and pencils, desks, and cell
phones. And these are just the tip of the iceberg. So it
makes sense to know something about how these things are
produced. Beyond all that is the fact that manufacturing is
largely responsible for the high standard of living people
have in industrialized countries.
After reading each chapter or supplement in the text,
attending related classroom lectures, and completing
assigned questions and problems, you should be able to do
each of the following:
Preface vii
Case:
Hazel 38
Selected Bibliography and Further Readings 38
Problem-Solving Guide 39
Cases:
Home-Style Cookies 67
Hazel Revisited 68
“Your Garden Gloves” 69
Girlfriend Collective 69
Operations Tour:
The U.S. Postal Service 70
Selected Bibliography and Further Readings 73
3 Forecasting 74
Introduction 76
Features Common to All Forecasts 78
Elements of a Good Forecast 78
Forecasting and the Supply Chain 79
Steps in the Forecasting Process 79 page xxiii
Approaches to Forecasting 80
Qualitative Forecasts 80
Forecasts Based on Time-Series Data 82
Associative Forecasting Techniques 98
Reading:
Lilacs 104
Forecast Accuracy 104
Reading:
High Forecasts Can be Bad News 106
Monitoring Forecast Error 107
Choosing a Forecasting Technique 111
Using Forecast Information 112
Computer Software in Forecasting 113
Operations Strategy 113
Reading:
Gazing at the Crystal Ball 114
Summary 115
Key Points 117
Key Terms 117
Solved Problems 118
Discussion and Review Questions 124
Taking Stock 125
Critical Thinking Exercises 125
Problems 125
Cases:
M&L Manufacturing 136
Highline Financial Services, Ltd. 137
Selected Bibliography and Further Readings 137
Operations Tour:
High Acres Landfill 174
Selected Bibliography and Further Readings 174