Introduction To Operations And Supply Chain Management

Third Edition Introduction to Operations and Supply Chain Management Cecil C. Bozarth North Carolina State University Robert B. Handfield North Carolina State University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Donna Battista Senior Acquisitions Editor: Chuck Synovec Editorial Assistant: Ashlee Bradbury Director of Marketing: Maggie Moylan Executive Marketing Manager: Anne Fahlgren Senior Managing Editor: Judy Leale Production Project Manager: Jane Bonnell Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director/Supervisor: Janet Slowik Art Director: Steve Frim Cover Design and Interior Design: Frubilicious Design Group Associate Media Project Manager, Editorial: Sarah Peterson Media Project Manager, Production: John Cassar Composition/Full-Service Project Management: PreMediaGlobal Printer/Binder: Quebecor World Color/Versailles Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: 10/12 Minion Regular Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text. Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. Screen shots and icons reprinted with permission from the Microsoft Corporation. This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation. Copyright © 2013, 2008, 2006 by Pearson Education, Inc., publishing as Prentice Hall. All rights reserved. Manufactured 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. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Bozarth, Cecil C. Introduction to operations and supply chain management / Cecil C. Bozarth, Robert B. Handfield.—3rd ed. p. cm. ISBN 978-0-13-274732-5 1. Management. 2. Production management. 3. Business logistics. I. Handfield, Robert B. II. Title. HD31.B7197 2013 658.5—dc23 2011042236 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-274732-4 ISBN 13: 978-0-13-274732-5 To Andrea. Two years behind us, and many more to go. C.B. To Sandi. Thanks for 21 years, and looking forward to the next 21. R.H. This page intentionally left blank ABOUT THE AUTHORS Cecil Bozarth is Professor of Operations and Supply Chain Management at the Poole College of Management at N.C. State University, where he has received awards for teaching excellence at both the undergraduate and graduate levels. He is a former chair of the Operations Management Division of the Academy of Management, and in 1999 was recognized by APICS as a subject matter expert (SME) in the area of supply chain management. His particular areas of interest are operations and supply chain strategy and supply chain information systems. Cecil’s consulting experience cuts across a wide range of industries, including such compa