Introduction to Materials Management, Eighth Edition
By Stephen N. Chapman, J. R. Tony Arnold, Ann K. Gatewood and Lloyd M. Clive
Contents:
Preface ix
1 Introduction to Materials Management 1
Introduction 1 / Operating Environment 1 / The Supply Chain Concept 4 / What is Materials
Management? 9 / Summary 13 / Key Terms 14 / Questions 14 / Problems 15 / Case
Study 1.1: Fran’s Flowers 15
2 Production Planning System 18
Introduction 18 / Manufacturing Planning and Control System 19 / Sales and Operations Planning 23 /
Manufacturing Resource Planning 25 / Enterprise Resource Planning 27 / Making the Production
Plan 27 / Summary 36 / Key Terms 37 / Questions 37 / Problems 38 / Case Study 2.1:
Meridian Water Pumps 42 / Case Study 2.2: Williams 3D Printers 43
3 Master Scheduling 45
Introduction 45 / Relationship to Production Plan 46 / Developing a Master Production
Schedule 48 / Production Planning, Master Scheduling, and Sales 53 / Summary 59 /
Key Terms 59 / Questions 59 / Problems 60 / Case Study 3.1: Acme Water Pumps 66 / Case
Study 3.2: The MasterChip Electronics Company 67 / Case Study 3.3: Macarry’s Bicycle Company 69
4 Material Requirements Planning 72
Introduction 72 / Bills of Material 74 / Material Requirements Planning Process 81 / Using the
Material Requirements Plan 92 / Summary 96 / Key Terms 96 / Questions 96 / Problems 97 /
Case Study 4.1: Apix Polybob Company 108 / Case Study 4.2: Benzie Products Company 110
5 Capacity Management 112
Introduction 112 / Definition of Capacity 112 / Capacity Planning 113 / Capacity Requirements
Planning 114 / Capacity Available 116 / Capacity Required (Load) 119 / Scheduling
Orders 122 / Making the Plan 123 / Summary 125 / Key Terms 125 / Questions 126 /
Problems 127 / Case Study 5.1: Wescott Products 130
6 Production Activity Control 133
Introduction 133 / Data Requirements 136 / Order Preparation 137 / Scheduling 138 /
Load Leveling 143 / Scheduling in a Nonmanufacturing Setting 144 / Scheduling Bottlenecks 144 /
Theory of Constraints and Drum-Buffer-Rope 146 / Implementation 149 / Control 150 /
Production Reporting 155 / Product Tracking 156 / Measurement Systems 156 / Summary 156 /
Key Terms 157 / Questions 157 / Problems 158 / Case Study 6.1: Johnston Products 162 /
Case Study 6.2: Crofts Printing Company 164 / Case Study 6.3: Melrose Products 165
7 Purchasing 168
Introduction 168 / Establishing Specifications 171 / Functional Specification Description 173 /
Selecting Suppliers 175 / Price Determination 178 / Impact of Material Requirements Planning on
Purchasing 180 / Environmentally Responsible Purchasing 182 / Expansion of Purchasing into Supply
Chain Management 183 / Some Organizational Implications of Supply Chain Management 185 /
Summary 186 / Key Terms 186 / Questions 186 / Problems 187 / Case Study 7.1: Let’s
Party! 187 / Case Study 7.2: The Connery Company 188
8 Forecasting and Demand Management 190
Introduction 190 / Demand Management 190 / Demand Forecasting 192 / Characteristics of
Demand 192 / Principles of Forecasting 194 / Collection and Preparation of Data 195 / Forecasting
Techniques 195 / Some Important Intrinsic Techniques 197 / Seasonality 200 / Tracking the
Forecast 203 / Summary 210 / Key Terms 210 / Questions 210 / Problems 211 / Case
Study 8.1: Northcutt Bikes: The Forecasting Problem 217 / Case Study 8.2: Hatcher Gear Company 219
9 Inventory Fundamentals 221
Introduction 221 / Aggregate Inventory Management 221 / Item Inventory Management 221 /
Inventory and the Flow of Material 222 / Supply and Demand Patterns 223 / Functions of
Inventories 223 / Objectives of Inventory Management 225 / Inventory Costs 227 / Financial
Statements and Inventory 229 / ABC Inventory Control 234 / Summary 237 / Key Terms 237 /
Questions 238 / Problems 239 / Case Study 9.1: Randy Smith, Inventory Control Manager 242
10 Order Quantities 245
Introduction 245 / Economic Order Quantity 246 / Variations of the EOQ Model 250 / Quantity
Discounts 251 / Order Quantities for Families of Product When Costs are Not Known 252 / Period
Order Quantity 253 / Summary 256 / Key Terms 256 / Questions 256 / Problems 257
11 Independent Demand Ordering Systems 261
Introduction 261 / Order Point System 261 / Determining Safety Stock 263 / Determining Service
Levels 269 / Different Forecast And Lead-Time Intervals 271 / Determining When The Order Point Is
Reached 271 / Periodic Review System 273 / Distribution Inventory 275 / Summary 278 /
Key Terms 278 / Questions 279 / Problems 280 / Case Study 11.1: Carl’s Computers 286
12 Physical Inventory and Warehouse Management 289
Introduction 289 / Warehousing Management 289 / Physical Control and Security 295 / Inventory
Record Accuracy 295 / Consignment Inventory and Vendor-Managed Inventory (VMI) 301 /
Technology Applications 302 / Summary 303 / Key Terms 303 / Questions 304 /
Problems 304 / Case Study 12.1: CostMart Warehouse 308
13 Physical Distribution 311
Introduction 311 / Physical Distribution 314 / Physical Distribution Interfaces 317 /
Transportation 318 / Legal Types of Carriage 320 / Transportation Cost Elements 321 /
Warehousing 326 / Packaging 331 / Material Handling 333 / Multi-Warehouse Systems 333 /
Summary 336 / Key Terms 336 / Questions 337 / Problems 338 / Case Study 13.1: Metal
Specialties, Inc. 339
14 Products and Processes 341
Introduction 341 / Need for New Products 341 / Product Development Principles 342 / Product
Specification and Design 344 / Process Design 346 / Factors Influencing Process Design 347 /
Processing Equipment 349 / Process Systems 349 / Process Costing 351 / Selecting the
Process 352 / Continuous Process Improvement 354 / Summary 364 / Key Terms 365 /
Questions 365 / Problems 367 / Case Study 14.1: Cheryl Franklin, Production Manager 370
15 Lean Production 372
Introduction 372 / Lean Production 372 / Waste 374 / The Lean Production Environment 376 /
Manufacturing Planning and Control in a Lean Production Environment 383 / Comparing ERP, Kanban,
and Theory of Constraints 395 / Summary 397 / Key Terms 398 / Questions 398 /
Problems 399 / Case Study 15.1: Murphy Manufacturing 401
16 Total Quality Management 404
Introduction 404 / What Is Quality? 404 / Total Quality Management 406 / Quality Cost
Concepts 410 / Variation as a Way of Life 411 / Process Capability 413 / Process Control 417 /
Sample Inspection 420 / ISO 9000:2015 422 / ISO 26000:2010 423 / ISO 14001:2015 424 /
Benchmarking 424 / Six Sigma 425 / Quality Function Deployment 426 / The Relationship of
Lean Production, TQM, and ERP 428 / Summary 429 / Key Terms 429 / Questions 430 /
Problems 431 / Case Study 16.1: Accent Oak Furniture Company 432
Readings 437
Index 441