Matching Supply with Demand: An Introduction to Operations Management ISE

Gerard Cachon (The Wharton School, University of Pennsylvania) Professor Cachon is the Fred R. Sullivan Professor of Operations, Information, and Decisions and a Professor of Marketing. He teaches a variety of undergraduate, MBA, executive, and PhD courses in operations management. His research focuses on operations strategy, and in particular, on how operations are used to gain competitive advantage.  His administrative responsibilities have included Chair of the Operations, Information and Decisions Department, Vice Dean of Strategic Initiatives for the Wharton School, and President of the Manufacturing and Service Operations Society. He has been named an INFORMS Fellow and a Distinguished Fellow of the Manufacturing and Service Operations Society.  His articles have appeared in Harvard Business Review, Management Science, Marketing Science, Manufacturing & Service Operations Management, and Operations Research. He is the former editor-in-chief of Manufacturing & Service Operations Management and Management Science. He has consulted with a wide range of companies, including 4R Systems, Ahold, Americold, Campbell Soup, Gulfstream Aerospace, IBM, Medtronic, and O’Neill.  Before joining The Wharton School in July 2000, Professor Cachon was on the faculty at the Fuqua School of Business, Duke University. He received a PhD from The Wharton School in 1995.  He is an avid proponent of bicycle commuting (and other environmentally friendly modes of transportation). Along with his wife and 4 children he enjoys hiking, scuba diving, and photography. Christian Terwiesch is the Andrew M. Heller Professor at the Wharton School of the University of Pennsylvania. He is a Professor in and the chair of Wharton’s Operations, Information, and Decisions department, co-director of Penn’s Mack Institute for Innovation Management, and also holds a faculty appointment in Penn’s Perelman School of Medicine. His research on Operations Management and on Innovation Management appears in many of the leading academic journals ranging from Management Science to The New England Journal of Medicine.  Professor Terwiesch has been teaching MBA and executive courses for 24 years and has received a number of teaching awards for his Operations Management course. Based on his MBA course and this book, Professor Terwiesch has launched the first Massive Open Online Course (MOOC) in business on Coursera. By now, well over half a million students enrolled in the course.  His first management book, Innovation Tournaments, was published by Harvard Business School Press. The novel, process-based approach to innovation outlined in the book was featured by BusinessWeek, the Financial Times, and the Sloan Management Review and has led to innovation tournaments in organizations around the world. His latest book, Connected Strategies, combines his expertise in the fields of operations, innovation, and strategy to help companies take advantage of digital technology leading to new business models. The book has been featured as the cover story of the Harvard Business Review and has been featured by Bloomberg/BusinessWeek as one of the best books in 2020.  Professor Terwiesch has researched with and consulted for various organizations. From small start-ups to Fortune 500 companies, he has helped companies become more innovative, often by implementing innovation tournament events and by helping to restructure their innovation portfolio. He holds a doctoral degree from INSEAD and a Diploma from the University of Mannheim.  Just like his co-author, he is a passionate cyclists and commutes to Penn’s campus by bike. Since both authors have a good chunk of their commute in common, large parts of this book have been discussed on bike rides.

1. Introduction

2. The Process View of the Organization

3. Understanding the Supply Process: Evaluating Process Capacity

4. Estimating and Reducing Labor Costs

5. Batching and Other Flow Interruptions: Setup Times and the Economic Order Quantity Model

6. The Link between Operations and Finance

7. Quality and Statistical Process Control

8. Lean Operations and the Toyota Production System

9. Variability and Its Impact on Process Performance: Waiting Time Problems

10. The Impact of Variability on Process Performance: Throughput Losses

11. Scheduling to Prioritize Demand

12. Project Management

13. Forecasting

14. Betting on Uncertain Demand: The Newsvendor Model

15. Assemble-to-Order, Make-to-Order, and Quick Response with Reactive Capacity

16. Service Levels and Lead Times in Supply Chains: The Order-up-to Inventory Model

17. Risk-Pooling Strategies to Reduce and Hedge Uncertainty

18. Revenue Management with Capacity Controls

19. Supply Chain Coordination




APPENDICES

1. Statistics Tutorial

2. Tables

3. Evaluation of the Expected Inventory and Loss Functions

4. Equations and Approximations