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 Page i

Managing Operations
Across the Supply Chain
Fifth Edition

Morgan Swink
Texas Christian University

Steven A. Melnyk
Michigan State University

Janet L. Hartley
Bowling Green State University
 Page ii

MANAGING OPERATIONS ACROSS THE SUPPLY CHAIN

Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10019.
Copyright ©2024 by McGraw Hill LLC. 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 LLC, including, but not limited to, in any network or other electronic storage
or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to
customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 LWI 28 27 26 25 24 23

ISBN 978-1-266-22977-0
MHID 1-266-22977-9
Cover Image: Helga Chirk/Shutterstock or FlashMovie/Shutterstock

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
LLC, and McGraw Hill LLC does not guarantee the accuracy of the information presented
at these sites.

mheducation.com/highered
 Page iii

The McGraw Hill Series in Operations and

Decision Sciences

Supply Chain Management

Bowersox, Closs, Cooper, and Bowersox
Supply Chain Logistics Management
Sixth Edition

Burt, Petcavage, and Pinkerton

Supply Management
Eighth Edition

Johnson
Purchasing and Supply Management
Seventeenth Edition

Simchi-Levi, Kaminsky, and Simchi-Levi

Designing and Managing the Supply Chain: Concepts, Strategies, Case Studies
Fourth Edition

Project Management
Larson
Project Management: The Managerial Process
Eighth Edition

Service Operations Management

Bordoloi, Fitzsimmons, and Fitzsimmons
Service Management: Operations, Strategy, Information Technology
Tenth Edition

Management Science
Hillier and Hillier
Introduction to Management Science: A Modeling and Case Studies Approach with
Spreadsheets
Seventh Edition

Business Research Methods

Schindler
Business Research Methods
Fourteenth Edition

Business Forecasting
Keating and Wilson
Business Forecasting
Seventh Edition

Business Systems Dynamics

Sterman
Business Dynamics:
Systems Thinking and Modeling for a Complex World

Operations Management
Cachon and Terwiesch
Matching Supply with Demand:
An Introduction to Operations Management
Fifth Edition

Cachon and Terwiesch

Operations Management
Third Edition

Jacobs and Chase

Operations and Supply Chain Management
Seventeenth Edition
Jacobs and Chase
Operations and Supply Chain Management: The Core
Sixth Edition

Schroeder and Goldstein

Operations Management in the Supply Chain: Decisions and Cases
Eighth Edition

Stevenson
Operations Management
Fourteenth Edition

Swink, Melnyk, Cooper, and Hartley

Managing Operations across the Supply Chain
Fifth Edition

Business Math
Slater and Wittry
Math for Business and Finance:
An Algebraic Approach
Third Edition

Slater and Wittry

Practical Business Math Procedures
Fourteenth Edition

Business Statistics
Bowerman, Drougas, Duckworth, Froelich, Hummel, Moninger, and Schur
Business Statistics and Analytics in Practice
Ninth Edition

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Applied Statistics in Business and Economics
Seventh Edition

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Essential Statistics in Business and Economics
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Basic Statistics for Business and Economics
Tenth Edition

Lind, Marchal, and Wathen

Statistical Techniques in Business and Economics
Nineteenth Edition

Jaggia and Kelly

Business Statistics: Communicating with Numbers
Fourth Edition

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Essentials of Business Statistics: Using Excel
Third Edition

Business Analytics
Jaggia, Kelly, Lertwachara, and Chen
Business Analytics: Communicating with Numbers
Second Edition

Richardson, Weidenmier Watson

Introduction to Business Analytics
First Edition

Taddy, Hendrix, Harding

Modern Business Analytics
First Edition
 Page iv

Dedication
To Jenni, Derek, Danielle, Rachel, and Sarah, who make my life so full!
Morgan Swink

To my wife and children, Christine, Charles and Beth, for their support and patience.
To my colleagues in the United States, Bob Trebilcock, Bill Ritchie, and Chris Peters.
To these people, this book is dedicated.
Steven A. Melnyk

To Glenn and Caleb, for their love and support.

Janet Hartley
 Page v

About the Authors

Courtesy of Morgan Swink

Morgan Swink
is Professor, Eunice and James L. West Chair of Supply Chain Management, and Executive
Director of the Center for Supply Chain Innovation at the Neeley School of Business, Texas
Christian University. He holds a BS in Mechanical Engineering from Southern Methodist
University, an MBA from the University of Dallas, and a PhD in Operations Management
from Indiana University. Before becoming a professor, Dr. Swink worked for 10 years in a
variety of manufacturing and product development positions at Texas Instruments
Incorporated. He has co-authored three books and published over 90 articles in a variety of
academic and managerial journals. Dr. Swink is formerly the Co-Editor in Chief for the
Journal of Operations Management and past president of the Decision Sciences Institute.
Courtesy of Steven A. Melnyk

Steven A. Melnyk
is Professor of Operations Management at Michigan State University. Dr. Melnyk obtained
his undergraduate degree from the University of Windsor and his doctorate from the Ivey
School of Business, the University of Western Ontario. He has co-authored 21 books
focusing on operations and the supply chain and has published over 100 refereed articles in
numerous international and national journals. He also is a member of several editorial
advisory boards, including the International Journal of Production Research and the
International Journal of Operations and Production Management. Dr. Melnyk has consulted
with over 60 companies. He has also served as a member of the APICS Board of Directors
(2014–2016) and the APICS leadership team (2015). In 2017, Dr. Melnyk was recognized as
a Distinguished Scholar by the Operations and Supply Chain Management Division of the
Academy of Management. From 2017 to 2019, Dr. Melnyk held a joint appointment with
the University of Newcastle (Australia), where he was given the Global Innovation Chair in
Supply Chain Management. In 2018, Dr. Melnyk was awarded the Withrow Award as a
teacher/scholar by the Eli Broad College of Business, Michigan State University.
Courtesy of Janet L. Hartley

Janet L. Hartley
is the Chan K. Hahn Professor and Associate Dean in the Schmidthorst College of Business
at Bowling Green State University. She received her BS in Chemical Engineering from the
University of Missouri-Rolla, and the MBA and PhD degrees in Business Administration
from the University of Cincinnati. Prior to graduate school, she developed new products and
designed new manufacturing processes for the Clorox Company. She has published 40
articles on supply management and supply chain management. She serves as an Associate
Editor for the Journal of Operations Management, Journal of Supply Chain Management,
International Journal of Operations and Production Management, and Journal of Purchasing
and Supply Management. Dr. Hartley is a past president of the Decision Sciences Institute.
 Page vi

Preface

We continue to live in dynamic and exciting times. Recent years have seen many changes
that have affected nearly every aspect of business, including operations management. In this
fifth edition of our book, we continue to reflect key shifts in operations management,
including transitions:
From a focus on the internal system to a focus on the supply chain. In today’s highly
competitive business environment, organizations must leverage the capabilities of their
suppliers and customers. Operations managers must look beyond the “four walls” of the
firm and take an integrated supply chain perspective of operations.
From a local focus to a global focus. As Thomas L. Friedman pointed out,1 the world is
indeed flat. Business solutions generated in Argentina are used to meet needs in the
United States, and parts built by suppliers located in China are used to assemble cars in
Canada. Commercial needs have overcome, to a large part, national borders, presenting
new opportunities and challenges for operations managers.
From an emphasis on tools and techniques to an emphasis on systems, people, and
processes. To be successful, operations managers must think more broadly than just the
application of analytical tools and techniques. They must take a systems view to address
important managerial issues such as designing processes, working with people, managing
information flows, and building interorganizational relationships.
From myopic pursuit of profit to a holistic pursuit of sustainability. Pressures on businesses
have risen to the point that they can no longer ignore or give only lip service to social and
environmental issues. Operations managers have to balance the profit motive with the
need to protect and even strengthen both people and the planet.
From a static to a dynamic treatment of operations and supply chain management. We have
revised each new edition to keep pace with changes taking place in the field. In recent
years, very evident changes include the emergence of millennials as key consumers and
the rapid developments taking place in digital technologies. Consequently, in this edition,
we introduce a new theme: digital. While the basics remain the same, the context in which
operations are managed continues to change rapidly.
Managing Operations Across the Supply Chain provides a global, supply chain perspective of
operations management for students in introductory courses in operations management and
in supply chain management courses that do not require an operations management
prerequisite. While the book is primarily written for undergraduates, it also can be used
effectively in MBA courses. There are several features that help to differentiate this book in
its view of operations management:
Broader Vision of Operations Management While many operations management textbooks
have revised or added a chapter to address supply chain issues, we developed our book
from the ground up to effectively integrate operations management and the supply chain.
The primary focus of the book is operations management, but we provide a “supply
chain” perspective. Operations management cuts across a firm’s boundaries, bringing
together its internal activities with the operations of customers, suppliers, and other
partners around the world. We clarify the functional roles of operations, supply
management, and logistics while examining the integrative processes that make up the
supply chain. One unique aspect of the book is that we examine both the upstream
(supply-side) and downstream (demand-side) aspects of the supply chain, including a
discussion of marketing and customer relationships.
Balanced Treatment The book balances the quantitative and qualitative coverage needed
to equip operations and supply chain managers for the challenges and opportunities they
face. It describes and applies analytical tools that operations managers use to support
decision making. However, we also address the important managerial issues such as
systems, people, and processes that are critical in a supply chain context.
Integrative Frameworks The book introduces and develops various topics in supply chain
operations management using five integrative frameworks:
1. An operations strategy framework that brings together three critical elements: Page vii
(1) the key customer, (2) the value proposition, and (3) capabilities,
introducing students to a broad supply chain perspective of operations management.
2. A foundations framework that covers process fundamentals, innovation, quality,
inventory, and lean thinking.
3. A relational framework that highlights functional, supplier, and customer management
aspects of operations management.
4. A planning framework that covers demand and supply planning at multiple levels.
5. A change management framework that illustrates how projects and future developments
can be used to drive innovation in operations management.
 Use of Integrating Themes Four key themes are highlighted throughout the book: digital
transformation, global issues, relationships, and sustainability.
Digital technologies such as the Internet and other communication networks,
automation, and artificial intelligence are rapidly and radically changing
supply chain operations management. The book highlights numerous
examples of these changes, explaining how technologies are enabling faster,
better, cheaper, and richer customer experiences.
Because most organizations have supply chains that reach beyond a home
country, we examine the dynamic global environment influencing supply chain
operations management, taking care to represent business norms and cultures in many
different parts of the world.
Operations managers must collaborate with other functional personnel, with
suppliers, and with customers to accomplish most operations activities. The
book showcases how to build, maintain, and benefit from cross-functional and
interorganizational relationships.
To reduce costs and be competitive, organizations today must adopt
sustainable business practices. Sustainability is increasingly becoming a key
metric for operations managers, and an important expectation of customers.
Accordingly, we have dedicated an entire chapter to sustainability, while also
incorporating it throughout the book.
Real, Integrated Examples The book brings operations and supply chain management to
life through opening vignettes, Get Real highlights, and rich examples throughout the
book. New for the fifth edition, we have included links to useful videos that can be used to
better illustrated the various points and concepts being discussed.

Managing Operations Across the Supply Chain, fifth edition, offers a new, global, supply chain
perspective of operations management, a treatment that embraces the foundations of
operations management but includes new frameworks, concepts, and tools to address the
demands of today and changing needs of the future. The book is organized into five major
sections:
Part 1 Supply Chain: A Perspective for Operations Management provides an overview of
operations management as a field, and describes the strategic role operations has in
business from the perspective of supply chain management.
Part 2 Foundations of Operations Management discusses foundational process concepts
and principles that govern all operational activities. This section examines concepts such
as product/process innovation, quality, lean, and inventory fundamentals.
Part 3 Integrating Relationships Across the Supply Chain deals with the primary
functional relationships between internal operations management activities, and other
operational functions both inside and outside the firm. This section describes customer
relationship management, supply management, and logistics management.
Part 4 Planning for Integrated Operations Across the Supply Chain discusses planning
approaches and technologies used at different levels of operations decision making. Key
topics such as demand planning, forecasting, sales and operations planning, inventory
management, and materials requirements planning are examined.
Part 5 Managing Change in Supply Chain Operations discusses how operations managers
use projects, change programs, and technologies to shape a sustainable future for
operations and supply chain management.
CHAPTER-BY-CHAPTER REVISIONS FOR THE FIFTH EDITION
In this major revision of Managing Operations Across the Supply Chain, our key objective has
been to further integrate and highlight the role of digital technologies throughout all aspects
of supply chain operations management. In addition, this revision identifies examples,
tables, and problems where supporting Excel spreadsheets are available for easier
management of data and enhanced learning. We also updated or replaced many of the
opening vignettes and Get Real stories throughout the book to make them more reflective of
contemporary issues such as the COVID19 pandemic, disruptions, labor concerns, and
more. Additional changes are summarized below.
Page viii
Chapter 1: Introduction to Managing Operations Across the Supply Chain
Replaced opening vignette with a discussion of how the COVID19 pandemic highlighted
the importance and challenges of supply chain management.

Chapter 2: Operations and Supply Chain Strategy

Introduced Environment, Social, and Governance (ESG) model of sustainability.

Chapter 3 and 3 Supplement: Managing Processes and Capacity

Added a new Get Real story describing challenges of building U.S. battery capacity in
support of growing demand for electric vehicles.
Added a new section further explaining the relationship between process design and
capacity decisions.
New Get Real story of how McDonald's has reduced drive-through wait times.
Added questions focusing on how Little's Law can be used to assess and improve the
performance of processes.

Chapter 4: Product/Process Innovation

Added new “Taco Explosion” end-of-chapter case highlighting the interaction of new
product introductions and supply chain planning in the restaurant industry.

Chapter 5: Manufacturing and Service Process Structures

Revised Capability Enabling Technologies section to reflect established and emerging
technologies including IoT, blockchain, robotics, and artificial intelligence.
New Get Real on showing how cobots are used at White Castle.
 New Get Real on how machine learning and data science are integral to StitchFix.

Chapter 6: Managing Quality

Expanded discussion of visibility platforms and the roles of technology.
Updated discussion on the importance of prevention.
Additional discussion questions.

Chapter 6 Supplement: Quality Improvement Tools

Additional discussion questions and problems.

Chapter 7: Managing Inventories

Updated and augmented data in Table 7-1.
Added Get Real on how the COVID19 pandemic
has influenced inventory decisions.
Added Get Real on Spirit Halloween's use of pop-up stores and single period inventory
model.

Chapter 8: Lean Systems

Introduced a detailed discussion of how Lean Systems and practices have been influenced
practices in healthcare.
Added a discussion of how the COVID19 pandemic
and the supply chain crises of 2020 to 2022 have influenced how researchers and
managers now view Lean.

Chapter 9: Customer Service Management

Revised opening vignette to highlight how online marketplaces are changing customers'
service expectations.
New Get Real on Target's creation of sortation centers for home delivery.
New Get Real on overpromising, underpromising, and customer satisfaction.
Replaced Amazon CRM Get Real with story of CRM at Erazor Bits.
Added problems that use order data to calculate fill rates (with supporting spreadsheet).
Added new “Global Glasses Glitches” end-of-chapter case.

Chapter 10: Sourcing and Supply Management

 Updated the opening vignette to include supply chain risk.
New Get Real on French fry shortages at McDonald's in Japan.
Updated the Get Real story on Takata airbags.
New Get Real on sustainability issues in fashion at Lucy & Yak.
New Get Real on Sherwin-Williams decision to insource key ingredients.
Updated supply management strategies and tactics.
Added discussion of the importance of supplier diversity as a selection criterion and a
new Get Real about the diverse ice cream company Creamalicious.

Chapter 11: Logistics Management

Added new learning objective (LO 11-8) regarding future state considerations for, and
factors influencing, the logistics industry.
Updated discussion on order processing to highlight its criticality as a first-step trigger for
logistics processes.
Updated the Get Real stories on Walmart’s supplier order delivery window and Page ix
Mobile Apps.
New Get Real story on Toyota’s inventory management strategy to tackle the computer
chip shortage.
Revised Transportation introductory section to highlight revised regulatory requirements
and global state of the maritime sector and megaships.
Updated the section on specialty carriers to reflect a more expanded view of the parcel
industry and the influence of last-mile delivery startups like Shipt and Deliv.
New Get Real story on the Ever Given megaship being stuck in the Suez Canal.
Updated section on reverse logistics to emphasize the role of reverse logistics centers such
as the one used by Acer America to support its remanufacturing processes.
Added a new figure 11-5 to graphically illustrate the step-wise nature of primary
warehouse processes.
Expanded the sub-section on order picking and packing to highlight the effect of e-
commerce growth on changing order picking profiles.
Updated introduction to Material Handling and Packaging section to highlight logistics
role in secondary and tertiary packaging functions.
 New Get Real on Ulta Beauty’s partnership with Happy Returns to streamline the reverse
logistics process.
Added student activity about warehouse automation.
Updated the section on inventory costs as part of logistics network design considerations,
to highlight its connections with Chapter 7’s discussion on the square root law.
Updated the section on facility location to highlight its connections to overall network
deployment strategy and total landed costs objectives.
Replaced student activity on blockchains with one more focused on understanding the
nature of the 3PL, 4PL, and LLP marketplace.
Added a new section on Future Perspectives for the logistics industry.

Chapter 12: Demand Planning: Forecasting and Demand Management

Updated Get Real stories.

Chapter 13: Sales and Operations Planning

Added S&OP maturity model.
Added discussion of planning technologies with accompanying student activity.
Replaced Nintendo Get Real with Get Real on capacity planning for vinyl record
production.
Added discussion of labor shortages and availability as a planning constraint.
Added new “Premium Foods COVID19 Pandemic Planning” end-of-chapter case on
planning in a disruptive environment.

Chapter 14: Materials and Resource Requirements Planning

Better explained certain key concepts such as Action Buckets, Scheduling, and Due Dates
(and how they are central to the MRP logic).
Updated the material so that it better reflects current understanding of MRP logic.
Discussed the evolution of MRP over time (beginning with MRP, and moving through
Closed Loop MRP, Manufacturing Resources Planning, and ERP).
Corrected problems in the chapter (e.g., Causal Manufacturing case).

Chapter 15 and 15 Supplement: Project Management

Updated opening Pixar vignette.
Chapter 16: Sustainable Operations Management—Preparing for the Future
Undergone a major revision to reflect developments now taking place regarding
sustainability.
Extended the discussion of the Triple Bottom Line to transit to ESG (Environmental,
Social, and Governance).
Updated the material to include a discussion of DEI (Diversity, Equity, and Inclusion)
initiatives—a factor now increasingly being observed in operations management systems
today.
Updated the discussion of sustainability standards to include the SASB standards.
Included a discussion of how firms are now using sustainability as a corporate strategy.
 Page x

Acknowledgments

We would like to express our appreciation to the people who have provided assistance in the
development of this textbook. We express our sincere thanks to the following individuals for
their thoughtful reviews and suggestions:

Dr. Mark Barratt, Marquette University

Joseph VanOrden, Arizona State University
Thomas Atkin, Sonoma State University
Reynold Byers, Arizona State University
Vivianne Moore, Davenport University
Asad Shafiq, California State University Fullerton
Olga Pak, Penn State
Graceful Beam, Georgia Northwestern Technical College
Kevin Burnard, Western Connecticut State University

We also want to express our sincere thanks to the following individuals for their exceptional
contributions: Katherine Eboch, Bowling Green State University; William Berry, Professor
Emeritus, Queens College; David Weltman, Texas Christian University; Frank Novakowski,
Davenport University; and Jody Wolfe, Clarke University.

We want to thank the outstanding McGraw Hill Education production and marketing team
who made this book possible, including Harper Christopher, executive marketing manager;
Rebecca Olson, senior portfolio director; Tim Vertovec, Vice President, BEC Portfolio;
Sherry Kane and Angela Norris, content project managers; Sandy Ludovissy, Manufacturing
Project Manager, Kevin Moran, digital content development director; and Beth Cray,
content licensing specialist.

A special thanks to our outstanding editorial team. We greatly appreciate the support,
encouragement, and patience shown by Nancy Dickson and Elizabeth Pappas, our product
developers. Thanks for keeping us on track! Our portfolio manager, Eric Weber, provided
excellent guidance and leadership throughout the process. We truly appreciate it!

Morgan Swink
Steven A. Melynk
Janet L. Hartley
 Page xi

Walkthrough

The following section highlights the key features of Managing Operations Across the Supply
Chain and the text’s accompanying resources, which have been developed to help you learn,
understand, and apply operations concepts.
CHAPTER ELEMENTS
Within each chapter of the text, you will find the following elements. All of these have been
developed to facilitate study and learning.

Opening Vignette
Each chapter opens with an introduction to the important operations topics covered in the
chapter. Students need to see the relevance of operations management in order to actively
engage in learning the material. Learning objectives provide a quick introduction to the
important operations topics that will be covered in the chapter.

Page xii

Key Terms
Key terms are presented in bold and defined in the margin as they are introduced. A list of
chapter key terms is also available at the end of the chapter.

Student Activity
At appropriate moments students are asked to do a personal activity that illustrates the
concept being presented or covered, thereby helping them learn to apply the concepts and
understand them more deeply.
Numbered Examples
Numbered examples are integrated into chapters where analytic techniques are introduced.
Students learn how to solve specific problems step by step and gain insight into general
principles by seeing how they are applied.

Page xiii

Get Real Boxes

Throughout the chapters, readings highlight important real-world applications. They provide
examples of operations issues and offer a picture of the concepts in practice. These also
provide a basis for classroom discussion and generate interest in the subject matter.
Icons
Instructive icons throughout the text point out relevant applications of our central themes of
global issues, relationships, sustainability, and digital technologies.

Since most organizations have supply chains that reach beyond a home country, we examine
global issues associated with operations and supply chain management.

Operations managers must collaborate with other functional personnel, with customers, and
with suppliers to accomplish many operations activities. The book showcases how to build,
maintain, and benefit from cross-functional and interorganizational relationships.

To reduce costs and be competitive, organizations today must adopt sustainable business
practices. In fact, sustainability is a key metric for operations managers and an important
expectation of customers.
Digital technologies such as the Internet and other communication networks, Page xiv
automation, and artificial intelligence are rapidly and radically changing supply
chain operations management. The book highlights numerous examples of these changes,
explaining how technologies are enabling faster, better, cheaper, and richer customer
experiences.
END-OF-CHAPTER RESOURCES
For student study and review, the following features are provided at the end of each chapter:

Chapter Summary Chapter summaries provide an overview of the material covered.

Key Terms Key terms are highlighted in the text, and then repeated at the end of the
chapter with page references.

Page xv
Discussion Questions Each chapter has a list of discussion questions. These are
intended to serve as a student self-review or as class discussion starters.
Solved Problems Solved problems illustrate problem solving and the main concepts in the
chapter. These have been carefully prepared to enhance student understanding as well as to
provide additional examples of problem solving.

Problems Each chapter includes a set of problems for assignment. The problems are
intended to be challenging but doable for students.

Page xvi
Cases The text includes short cases for most chapters. The cases were selected to
provide a broader, more integrated thinking opportunity for students without taking a “full
case” approach.
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