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NURSINGPRO001
T WELF T H EDIT ION




OPER AT IONS
M A NAGEMEN T
Sustainability and Supply Chain Management




JAY HEIZER | BARRY RENDER | CHUCK MUNSON

, O P E R AT I O N S
MANAGEMENT
Sustainability and Supply Chain Management




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561590_MILL_MICRO_FM_ppi-xxvi.indd 2 24/11/14 5:26

, TWELFTH EDITION




O P E R AT I O N S
MANAGEMENT
Sustainability and Supply Chain Management




J AY

HEIZER
Jesse H. Jones Professor of Business Administration
Texas Lutheran University



B A R RY

RENDER
Charles Harwood Professor of Operations Management
Graduate School of Business
Rollins College



C H U C K

MUNSON
Professor of Operations Management
Carson College of Business
Washington State University




Boston Columbus Indianapolis New York San Francisco
Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto
Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo




A01_HEIZ0422_12_SE_FM.indd iii 29/12/15 4:08

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Library of Congress Cataloging-in-Publication Data

Heizer, Jay.
[Production and operations management]
Operations management; sustainability and supply chain management / Jay Heizer, Jesse H. Jones Professor of Business Administration, Texas
Lutheran University, Barry Render, Charles Harwood Professor of Operations Management, Crummer Graduate School of Business, Rollins
College, Chuck Munson, Professor of Operations Management, Carson College of Business, Washington State University. -- Twelfth edition.
pages cm
Original edition published under the Title: Production and operations management.
Includes bibliographical references and index.
ISBN 978-0-13-413042-2 -- ISBN 0-13-413042-1
1. Production management. I. Render, Barry. II. Munson, Chuck. III. Title.
TS155.H3725 2015
658.5--dc23
2015036857




10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-413042-1
ISBN 13: 978-0-13-413042-2




A01_HEIZ0422_12_SE_FM.indd iv 29/12/15 4:08

, To Karen Heizer Herrmann, all a sister could ever be
J.H.


To Donna, Charlie, and Jesse
B.R.


To Kim, Christopher, and Mark Munson for their unwavering support,
and to Bentonville High School teachers Velma Reed and Cheryl Gregory,
who instilled in me the importance of detail and a love of learning
C.M.




A01_HEIZ0422_12_SE_FM.indd v 29/12/15 4:08

, ABOUT THE Professor Emeritus, the Jesse H. Jones Chair of Business Administration, Texas
Lutheran University, Seguin, Texas. He received his B.B.A. and M.B.A. from

AUTHORS the University of North Texas and his Ph.D. in Management and Statistics from
Arizona State University. He was previously a member of the faculty at the
University of Memphis, the University of Oklahoma, Virginia Commonwealth
JAY HEIZER University, and the University of Richmond. He has also held visiting positions at
Boston University, George Mason University, the Czech Management Center, and
the Otto-Von-Guericke University, Magdeburg.
Dr. Heizer’s industrial experience is extensive. He learned the practical side of
operations management as a machinist apprentice at Foringer and Company, as a
production planner for Westinghouse Airbrake, and at General Dynamics, where
he worked in engineering administration. In addition, he has been actively involved
in consulting in the OM and MIS areas for a variety of organizations, includ-
ing Philip Morris, Firestone, Dixie Container Corporation, Columbia Industries,
and Tenneco. He holds the CPIM certification from APICS—the Association for
Operations Management.
Professor Heizer has co-authored 5 books and has published more than 30 arti-
cles on a variety of management topics. His papers have appeared in the Academy
of Management Journal, Journal of Purchasing, Personnel Psychology, Production &
Inventory Control Management, APICS—The Performance Advantage, Journal of
Management History, IIE Solutions, and Engineering Management, among others.
He has taught operations management courses in undergraduate, graduate, and
executive programs.

BARRY RENDER Professor Emeritus, the Charles Harwood Professor of Operations Management,
Crummer Graduate School of Business, Rollins College, Winter Park, Florida.
He received his B.S. in Mathematics and Physics at Roosevelt University, and his
M.S. in Operations Research and Ph.D. in Quantitative Analysis at the University
of Cincinnati. He previously taught at George Washington University, University
of New Orleans, Boston University, and George Mason University, where he held
the Mason Foundation Professorship in Decision Sciences and was Chair of the
Decision Sciences Department. Dr. Render has also worked in the aerospace indus-
try for General Electric, McDonnell Douglas, and NASA.
Professor Render has co-authored 10 textbooks for Pearson, including Managerial
Decision Modeling with Spreadsheets, Quantitative Analysis for Management, Service
Management, Introduction to Management Science, and Cases and Readings in
Management Science. Quantitative Analysis for Management, now in its 13th edition,
is a leading text in that discipline in the United States and globally. Dr. Render’s
more than 100 articles on a variety of management topics have appeared in
Decision Sciences, Production and Operations Management, Interfaces, Information
and Management, Journal of Management Information Systems, Socio-Economic
Planning Sciences, IIE Solutions, and Operations Management Review, among others.
Dr. Render has been honored as an AACSB Fellow and was twice named a
Senior Fulbright Scholar. He was Vice President of the Decision Science Institute
Southeast Region and served as Software Review Editor for Decision Line for six
years and as Editor of the New York Times Operations Management special issues
for five years. For nine years, Dr. Render was President of Management Service
Associates of Virginia, Inc., whose technology clients included the FBI, NASA,
the U.S. Navy, Fairfax County, Virginia, and C&P Telephone. He is currently
Consulting Editor to Pearson Press.
Dr. Render has received Rollins College’s Welsh Award as leading Professor and
was selected by Roosevelt University as the recipient of the St. Claire Drake Award
for Outstanding Scholarship. Dr. Render also received the Rollins College MBA
Student Award for Best Overall Course, and was named Professor of the Year by
full-time MBA students.



vi




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, ABOUT T H E AUT HORS vii

Professor of Operations Management, Carson College of Business, Washington CHUCK MUNSON
State University, Pullman, Washington. He received his BSBA summa cum laude
in finance, along with his MSBA and Ph.D. in operations management, from
Washington University in St. Louis. For two years, he served as Associate Dean for
Graduate Programs in Business at Washington State. He also worked for three years
as a financial analyst for Contel Telephone Corporation.
Professor Munson serves as a senior editor for Production and Operations
Management, and he serves on the editorial review board of four other journals. He
has published more than 25 articles in such journals as Production and Operations
Management, IIE Transactions, Decision Sciences, Naval Research Logistics,
European Journal of Operational Research, Journal of the Operational Research
Society, and Annals of Operations Research. He is editor of the book The Supply
Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM,
and he has co-authored the research monograph Quantity Discounts: An Overview
and Practical Guide for Buyers and Sellers. He is also coauthor of Managerial
Decision Modeling with Spreadsheets (4th edition), published by Pearson.
Dr. Munson has taught operations management core and elective courses at
the undergraduate, MBA, and Ph.D. levels at Washington State University. He has
also conducted several teaching workshops at international conferences and for
Ph.D. students at Washington State University. His major awards include being a
Founding Board Member of the Washington State University President’s Teaching
Academy (2004); winning the WSU College of Business Outstanding Teaching
Award (2001 and 2015), Research Award (2004), and Service Award (2009 and
2013); and being named the WSU MBA Professor of the Year (2000 and 2008).




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, Brief Table of Contents
PART ONE Introduction to Operations Management 1
Chapter 1 Operations and Productivity 1
Chapter 2 Operations Strategy in a Global Environment 29
Chapter 3 Project Management 59
Chapter 4 Forecasting 105

PART TWO Designing Operations 159
Chapter 5 Design of Goods and Services 159

Supplement 5 Sustainability in the Supply Chain 193
Chapter 6 Managing Quality 213

Supplement 6 Statistical Process Control 245
Chapter 7 Process Strategy 279

Supplement 7 Capacity and Constraint Management 307
Chapter 8 Location Strategies 337
Chapter 9 Layout Strategies 367
Chapter 10 Human Resources, Job Design, and Work Measurement 407

PART THREE Managing Operations 441
Chapter 11 Supply Chain Management 441

Supplement 11 Supply Chain Management Analytics 471
Chapter 12 Inventory Management 487
Chapter 13 Aggregate Planning and S&OP 529
Chapter 14 Material Requirements Planning (MRP) and ERP 563
Chapter 15 Short-Term Scheduling 599
Chapter 16 Lean Operations 635
Chapter 17 Maintenance and Reliability 659

PART FOUR Business Analytics Modules 677
Module A Decision-Making Tools 677
Module B Linear Programming 699
Module C Transportation Models 729
Module D Waiting-Line Models 747
Module E Learning Curves 775
Module F Simulation 791

ONLINE TUTORIALS
1. Statistical Tools for Managers T1-1
2. Acceptance Sampling T2-1
3. The Simplex Method of Linear Programming T3-1
4. The MODI and VAM Methods of Solving Transportation Problems T4-1
5. Vehicle Routing and Scheduling T5-1

ix




A01_HEIZ0422_12_SE_FM.indd ix 29/12/15 4:08

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