Professor Cachon is the Fred R. Sullivan Professor of Operations, Information, and Decisons at The Wharton School of the University of Pennsylvania, where he teaches a variety of undergraduate, MBA, executive, and Ph.D. 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 ONeill.
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 Ph.D. 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 four children he enjoys hiking, scuba diving and photography.
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 146
9 The Impact of Variability on Process Performance: Throughput Losses 185
10 Quality Management, Statistical Process Control, and Six-Sigma Capability 200
11 Lean Operations and the Toyota Production System 224
12 Betting on Uncertain Demand: The Newsvendor Model 242
13 Assemble-to-Order, Make-to-Order, and Quick Response with Reactive Capacity 272
14 Service Levels and Lead Times in Supply Chains: The Order-up-to Inventory Model 289
15 Risk-Pooling Strategies to Reduce and Hedge Uncertainty 323
16 Revenue Management with Capacity Controls 357
17 Supply Chain Coordination 377
18 Sustainable Operations 407
19 Business Model Innovation 416
APPENDIXES
A Statistics Tutorial 430
B Tables 439
C Evaluation of the Loss Function 451D Equations and Approximations 454
E Solutions to Selected Practice Problems 462
GLOSSARY 484
REFERENCES 494
INDEX OF KEY “HOW TO”
EXHIBITS 497
SUMMARY OF KEY NOTATION AND EQUATIONS 498
INDEX 000