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Matching Supply with Demand: An Introduction to Operations Management, 5th Edition
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Cachon Matching Supply with Demand, 5e is a clear, concise, and more rigorous approach to an introductory
Operations management course. Written by Wharton authors who use their guiding principles “real operations, real
solutions” to bring the text and concepts to life, writing most chapters from the perspective of specific companies. The
“real solutions” refers to providing students with tools and strategies they can implement in practice and apply the
author's models in a realistic operational setting. The authors strive for “real simple” by using as little mathematical
notation as possible, focusing on many real-world examples and consistent terminology and phrasing throughout. They
have even included author-created videos to help instructors better understand each chapter which can be found in the
Chapter Video Teaching Notes in the Instructor Resources. Cachon, Matching Supply with Demand, 5e is a strongly
application based advanced title suitable for senior-level undergraduate courses or graduate-level courses.
Chapter 1:Introduction
Chapter 2:The Process View of the Organization
Chapter 3:Understanding the Supply Process: Evaluating Process Capacity
Chapter 4:Estimating and Reducing Labor Costs
Chapter 5:Batching and Other Flow Interruptions: Setup Times and the Economic OrderQuantity Model
Chapter 6:The Link between Operations and Finance
Chapter 7:Quality and Statistical Process Control
Chapter 8:Lean Operations and the Toyota Production System
Chapter 9:Variability and Its Impact on Process Performance: Waiting Time Problems
Chapter 10:The Impact of Variability on Process Performance: Throughput Losses
Chapter 11:Scheduling to Prioritize Demand
Chapter 12:Project Management
Chapter 13:Forecasting
Chapter 14:Betting on Uncertain Demand: The Newsvendor Model
Chapter 15:Assemble-to-Order, Make-to-Order, and Quick Response with Reactive Capacity
Chapter 16: Service Levels and Lead Times in Supply Chains: The Order-up-toInventory Model
Chapter 17:Risk-Pooling Strategies to Reduce and Hedge Uncertainty
Chapter 18:Revenue Management with Capacity Controls
Chapter 19:Supply Chain Coordination
AppendixA: Statistics Tutorial
Appendix B:Tables
Appendix C:Evaluation of the Expected Inventory and Loss Functions
Appendix D:Equations and Approximations
Appendix E:Solutions to Selected Practice Problems
Index ofKey “How to” Exhibits
Summary ofKey Notation and Equations
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About the Author
Gerard Cachon
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
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.
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