Chopra - Supply Chain Management: Strategy, Planning, and Operation, Global Edition

Seventh Edition
Global Edition

S TRATEGY , P LANNING, AND O PERATION

Sunil Chopra

Kellogg School of Management

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The rights of Sunil Chopra, to be identified as the author of this work, have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

Authorized adaptation from the United States edition, entitled Supply Chain Management: Strategy, Planning, and Operation, 7th Edition , ISBN 978-0-13-473188-9 by Sunil Chopra, published by Pearson Education 2019.

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British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library

10 9 8 7 6 5 4 3 2 1

Print ISBN 10: 1-292-25789-X

Print ISBN 13: 978-1-292-25789-1

eText ISBN 13: 978-1-292-29483-4

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I would like to thank my colleagues at Kellogg for all I have learned from them about logistics and supply chain management. I thank Peter Meindl for his collaboration during earlier editions of this book. I am grateful for the love and encouragement that my parents, Krishan and Pushpa, and sisters, Sudha and Swati, have always provided during every endeavor in my life. I thank my children, Ravi and Rajiv, for the joy they have brought me. Finally, none of this would have been possible without the constant love, caring, and support of my wife, Maria Cristina.

Sunil Chopra

Sunil Chopra is the IBM Distinguished Professor of Operations Management and Information Systems at the Kellogg School of Management. He has served as the interim dean and senior associate dean for curriculum and teaching, and the codirector of the MMM program, a joint dual-degree program between the Kellogg School of Management and the McCormick School of Engineering at Northwestern University. He has a PhD in operations research from SUNY at Stony Brook. Prior to joining Kellogg, he taught at New York University and spent a year at IBM Research.

Professor Chopras research and teaching interests are in supply chain and logistics management, operations management, combinatorial optimization, and the design of telecommunication networks. He has won several teaching awards at the MBA and Executive programs of Kellogg. He has authored more than 50 papers and two books.

He has been a department editor for Management Science and an associate editor for Manufacturing & Service Operations Management , Operations Research, and Decision Sciences Journal . He has also consulted for several firms in the area of supply chain and operations management.

This book is targeted toward an academic as well as a practitioner audience. On the academic side, it is appropriate for MBA students, engineering masters students, and senior undergraduate students interested in supply chain management and logistics. It can also serve as a suitable reference for both concepts as well as providing a methodology for practitioners in consulting and industry.

The seventh edition has focused on changes that enhance students ability to sharpen their critical thinking and data analytics skills as they study with the book. All concepts discussed in the book are linked to strategic decision making in a supply chain, and all quantitative ideas are illustrated using spreadsheets that can be implemented in practice. Some specific changes in the seventh edition include:

• The link between supply chain decisions and the financial performance of a firm is developed in detail in .

• The concepts underlying the design of distribution networks are illustrated in the context of omni-channel retailing in . The evolution of retailing is used throughout the book to illustrate the link between supply chain concepts and strategic decision making in a supply chain.

• Each section of each chapter in the book is associated with a clearly identified learning objective that is summarized at the end of the section.

• We have added new mini-cases in . Information in other cases has been updated to be current.

• New exercises have been added in several chapters.

• For all numerical examples discussed in the book, we have developed spreadsheets that students can use to understand the concept at a deeper level. These spreadsheets are referred to in the book and allow the student to try different what-if analyses. These spreadsheets are available at http://www.pearsonglobaleditions.com along with basic guidance on how they may be created and used.

• We have continued to add current examples throughout the book, with a particular focus on bringing in more global examples.

To be successful, supply chain practitioners must be able to formulate effective supply chain strategy and be able to solve any resulting supply chain problems using the available analytical tools. In a supply chain class this creates the challenge of teaching students to think strategically while supporting their decisions with robust quantitative analysis. This book is designed to help faculty and students overcome this challenge through its conceptual and pedagogical structure. Conceptually, the book aims to develop an understanding of the following key areas and their interrelationships: