Matching Supply with Demand
An Introduction to Operations Management

Third Edition
Gérard Cachon
Christian Terwiesch

Brief Contents
1 Introduction 1
2 The Process View of the
Organization 10
3 Understanding the Supply Process:
Evaluating Process Capacity 32
4 Estimating and Reducing Labor Costs 56
5 Project Management 80
6 The Link between Operations and Finance 96
7 Batching and Other Flow Interruptions: Setup Times and the Economic Order Quantity Model 114
8 Variability and Its Impact on Process Performance: Waiting Time Problems 144
9 The Impact of Variability on Process Performance: Throughput Losses 183
10 Quality Management, Statistical Process Control, and Six-Sigma Capability 198
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