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Principles of Supply Chain Management
A BALANCED APPROACH

3e

JOEL D. WISNER
University of Nevada, Las Vegas •

KEAH-CHOON TAN
University of Nevada, Las Vegas •

G. KEONG LEONG
University of Nevada, Las Vegas

Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

Principles of Supply Chain Management, Third edition Joel D. Wisner, Keah-Choon Tan, G. Keong Leong Editorial Director: Jack W. Calhoun Sr. Acquisitions Editor: Charles McCormick, Jr. Developmental Editor: Daniel Noguera Editorial Assistant: Nora Heink Marketing Manager: Adam Marsh Media Editor: Chris Valentine Manufacturing Buyer: Miranda Klapper Production Service: PreMediaGlobal Sr. Art Director: Stacy Jenkins Shirley Cover Designer: Lou Ann Thesing Cover Image: iStock Photo

© 2012, 2009 South-Western, a part of Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com

Library of Congress Control Number: 2010943343 ISBN 13: 978-0-538-47546-4 ISBN 10: 0-538-47546-3 South-Western 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd. For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com

Printed in the United States of America 1 2 3 4 5 6 7 15 14 13 12 11

To CJ, Hayley and Blake. JOEL D. WISNER To Shaw Yun, Wen Hui and Wen Jay. KEAH-CHOON TAN To Lin and Michelle. G. KEONG LEONG

Brief Contents
Preface xv Acknowledgements xvii About the Authors xviii

Part 1 Part 2 Part 3

Supply Chain Management: An Overview 1
Chapter 1
Introduction to Supply Chain Management 3

Supply Issues in Supply Chain Management 35
Chapter Chapter Chapter 2 3 4
Purchasing Management 37 Creating and Managing Supplier Relationships 73 Ethical and Sustainable Sourcing 99

Operations Issues in Supply Chain Management 131
Chapter Chapter Chapter Chapter 5 6 7 8
Demand Forecasting 133 Resource Planning Systems 165 Inventory Management 207 Process Management—Lean and Six Sigma in the Supply Chain 249

Part 4

Distribution Issues in Supply Chain Management 297
Chapter 9 Chapter 10 Chapter 11 Chapter 12
Domestic U.S. and Global Logistics 299 Customer Relationship Management 343 Global Location Decisions 375 Service Response Logistics 401

Part 5

Integration Issues in Supply Chain Management 445
Chapter 13 Chapter 14
Supply Chain Process Integration 447 Performance Measurement Along the Supply Chain 481

On the Companion Website
Cases in...
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