LibraryPirate This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Principles of Supply Chain Management A BALANCED APPROACH 3e JOEL D. WISNER University of Nevada, Las Vegas • KEAH-CHOON TAN University of Nevada, Las Vegas • G. KEONG LEONG University of Nevada, Las Vegas Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Principles of Supply Chain Management, Third edition Joel D. Wisner, Keah-Choon Tan, G. Keong Leong Editorial Director: Jack W. Calhoun Sr. Acquisitions Editor: Charles McCormick, Jr. © 2012, 2009 South-Western, a part of Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. Developmental Editor: Daniel Noguera Editorial Assistant: Nora Heink Marketing Manager: Adam Marsh Media Editor: Chris Valentine Manufacturing Buyer: Miranda Klapper Production Service: PreMediaGlobal For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at cengage.com/permissions Further permissions questions can be emailed to
[email protected] Sr. Art Director: Stacy Jenkins Shirley Cover Designer: Lou Ann Thesing Cover Image: iStock Photo Library of Congress Control Number: 2010943343 ISBN 13: 978-0-538-47546-4 ISBN 10: 0-538-47546-3 South-Western 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America 1 2 3 4 5 6 7 15 14 13 12 11 To CJ, Hayley and Blake. JOEL D. WISNER To Shaw Yun, Wen Hui and Wen Jay. KEAH-CHOON TAN To Lin and Michelle. G. KEONG LEONG Brief Contents Preface xv Acknowledgements xvii About the Authors xviii Part 1 Supply Chain Management: An Overview 1 Chapter Part 2 2 3 4 5 6 7 8 Demand Forecasting 133 Resource Planning Systems 165 Inventory Management 207 Process Management—Lean and Six Sigma in the Supply Chain 249 Distribution Issues in Supply Chain Management 297 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Part 5 Purchasing Management 37 Creating and Managing Supplier Relationships 73 Ethical and Sustainable Sourcing 99 Operations Issues in Supply Chain Management 131 Chapter Chapter Chapter Chapter Part 4 Introduction