Supply Chain Management: A Logistics Perspective PDF
Preview Supply Chain Management: A Logistics Perspective
C. John LangLey, Jr. The Pennsylvania State University • robert a. novaCk The Pennsylvania State University • brian J. gibson Auburn University • John J. CoyLe The Pennsylvania State University Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 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. Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Supply Chain Management: A Logistics © 2021, 2017 Cengage Learning, Inc. Perspective, 11th Edition Unless otherwise noted, all content is © Cengage. C. John Langley Jr., Robert A. Novack, WCN: 02-300 Brian J. Gibson, John J. Coyle ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, Senior Vice President, Higher Education & except as permitted by U.S. copyright law, without the prior written Skills Product: Erin Joyner permission of the copyright owner. Product Director: Jason Fremder Sr. Product Manager: Aaron Arnsparger For product information and technology assistance, contact us at or Cengage Customer & Sales Support, 1-800-354-9706 Sr. Content Manager: D. Jean Bora support.cengage.com. Product Assistant: Margaret Russo For permission to use material from this text or product, Marketing Manager: Christopher Walz submit all requests online at www.cengage.com/permissions. Intellectual Property Analyst: Ashley Maynard Library of Congress Control Number: 2019920621 Intellectual Property Project Manager: Kelli Besse Production Service/Composition: SPi Global ISBN: 978-0-357-44213-5 Art Direction, Text and Cover Design: Chris Cengage Doughman 200 Pier 4 Boulevard Cover Images: Phipatbig/ShutterStock.com, Boston, MA 02210 julia.m/ShutterStock.com USA Cengage is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. Cengage products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage platforms and services, register or access your online learning solution, or purchase materials for your course, visit www.cengage.com. Printed in the United States of America Print Number: 01 Print Year: 2020 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Dedication The authors of Supply Chain Management: A Global Logistics Perspective would like to dedicate this 11th edition to our current and former students and industry executives who have successfully used the principles of supply chain management to enhance their careers, improve their organizations, and dedicate themselves to improvement of the world in which we live. These individuals well understand that the significance of effective, efficient, and innovative supply chain practices extends far beyond enhancing the abilities of our organizations to work together, and more broadly represents a unifying and coordinating discipline that helps to match supply and demand on a global scale. We thank all of you for what you have accomplished to date, and what we know you will accomplish in the future. As we are clearly in an era of continuous change, we are confident that our supply chain ambitions, practices, and capabilities will rise to unprecedented levels. A very special note of thanks and appreciation is due to our families who have supported our engagement in the 11th edition update. John Coyle would like to thank his wife Barbara, their children John and Susan, and their grandchildren Lauren, Matthew, Elizabeth Kate, Emily, Ben, Cathryn, and Zachary. John Langley would like to thank his wife Anne, their children Sarah and Mercer, and their grandchildren Bryson, Molly, and Anna. Bob Novack would like to thank his wife Judith, their children Tom, Elizabeth, and Alex, and their grandchildren Mason and Eleanor. Brian Gibson would like to thank his wife Marcia and son Andy. Last, we would like to acknowledge the help and assistance of the many industry profes- sionals and publishers of academic and trade journals for supporting the task of creating the 11th edition of Supply Chain Management: A Logistics Perspective. Of particular note is Michael A. Levans, Group Editorial Director of Peerless Media’s group of publica- tions including Logistics Management, Supply Chain Management Review, and Modern Materials Handling. Mr. Levans was very helpful with allowing the use of a number of articles from the publications with which he is involved. Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Brief Contents Preface xxi About the Authors xxv Part I Chapter 1 Supply Chain Management: An Overview 3 Chapter 2 Global Dimensions of Supply Chains 27 Chapter 3 Role of Logistics in Supply Chains 51 Chapter 4 Supply Chain and Omni-Channel Network Design 91 Part II Chapter 5 Sourcing Materials and Services 139 Chapter 6 Producing Goods and Services 171 Chapter 7 Demand Management 205 Chapter 8 Order Management and Customer Service 231 Part III Chapter 9 Managing Inventory in the Supply Chain 287 Chapter 10 Distribution—Managing Fulfillment Operations 367 Chapter 11 T ransportation—Managing the Flow of the Supply Chain 413 Part IV Chapter 12 Aligning Supply Chains 471 Chapter 13 S upply Chain Performance Measurement and Financial Analysis 497 Chapter 14 S upply Chain Technology—Managing Information Flows 539 Chapter 15 S trategic Challenges and Change for Supply Chains 569 Notes 601 Subject Index 613 Name Index 625 v Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Contents Preface xxi About the Authors xxv Part I Chapter 1 Supply Chain Management: An Overview 3 SuPPly ChAIN ProfIle: SAB Distribution: The Next Chapter 4 1-1 Introduction 5 1-2 Shaping the Supply Chains of the Twenty-First Century: Evolution and Change 6 1-2a Globalization 7 1-2b Technology 9 1-2c Organizational Consolidation and Power Shifts 9 1-2d The Empowered Consumer 10 1-2e Government Policy and Regulation 10 oN the lINe: Changing Times for Drugs 11 1-2f Sustainability 12 1-3 Supply Chains: Development and Shaping for the Twenty-First Century 13 1-3a Development of the Concept 13 1-4 Major Supply Chain Issues 18 1-4a Supply Chain Networks 19 1-4b Complexity 19 1-4c Inventory Deployment 19 1-4d Information 19 1-4e Cost and Value 20 1-4f Organizational Relationships 20 1-4g Performance Measurement 20 1-4h Technology 21 1-4i Transportation Management 21 1-4j Supply Chain Security 21 1-4k Talent Management 22 Summary 22 Study Questions 23 Case 1.1: Lehigh Valley Transport and Logistics Service (LVTLS) 24 Case 1.2: Central Transport, Inc. 25 vii Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. viii Contents Chapter 2 Global Dimensions of Supply Chains 27 SuPPly ChAIN ProfIle: The Impact of Changing Weather Patterns 28 2-1 Introduction 28 2-2 Rationale for Global Trade and Commerce 29 2-3 Contributing Factors for Global Commerce and Supply Chain Flows 30 2-3a Global Demographics 30 2-3b Land and Resources 34 oN the lINe: Economic Growth and the Birth Rate 35 2-3c Technology and Information 35 2-4 Global Supply Chain Flows 36 2-5 Supply Chains in a Global Economy 39 oN the lINe: How Customer Experience Is Driving Supply Chain Innovation 40 2-6 Global Markets and Strategy 41 2-7 Supply Chain Security: A Balancing Act 43 2-8 Ports 44 2-9 North American Free Trade Agreement 45 Summary 45 Study Questions 46 Case 2.1: Red Fish–Blue Fish, LLP 47 Case 2.2: Nike, Inc. Global Supply Chain Strategy 49 Chapter 3 Role of Logistics in Supply Chains 51 SuPPly ChAIN ProfIle: Girl Scouts Know Logistics 52 3-1 Introduction 52 3-2 What Is Logistics? 54 3-3 Value-Added Roles of Logistics 56 3-3a Form Utility 56 3-3b Place Utility and Time Utility 56 oN the lINe: Age of the Drone: Good News or Bad News??? 57 3-3c Quantity Utility 58 3-3d Possession Utility 59 3-4 Logistics Activities 59 3-4a Transportation 59 3-4b Storage 60 3-4c Packaging 60 3-4d Materials Handling 60 3-4e Inventory Control 61 3-4f Order Fulfillment 61 3-4g Forecasting 61 3-4h Production Planning 62 Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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