Global
edition
Supply Chain Management
Strategy, Planning, and Operation
sixth edition
Sunil Chopra • Peter Meindl
, Sixth Edition
Global Edition
Supply Chain Management
Strategy, Planning, and Operation
Sunil Chopra
Kellogg School of Management
Peter Meindl
Kepos Capital
Boston Columbus Indianapolis New York San Francisco Amsterdam
Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto
Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
,Vice President, Business Publishing: Donna Battista Operations Specialist: Carol Melville
Acquisitions Editor: Dan Tylman Creative Director: Blair Brown
Editorial Assistant: Linda Seibert Albelli Art Director: Jon Boylan
Vice President, Product Marketing: Maggie Moylan Vice President, Director of Digital Strategy and Assessment:
Director of Marketing, Digital Services and Products: Paul Gentile
Jeanette Koskinas Manager of Learning Applications: Paul DeLuca
Executive Product Marketing Manager: Anne Fahlgren Digital Editor: Megan Rees
Executive Field Marketing Manager: Lenny Ann Raper Director, Digital Studio: Sacha Laustsen
Senior Strategic Marketing Manager: Erin Gardner Digital Studio Manager: Diane Lombardo
Team Lead, Program Management: Ashley Santora Digital Studio Project Manager: James Bateman
Program Manager: Claudia Fernandes Digital Content Team Lead: Noel Lotz
Team Lead, Project Management: Jeff Holcomb Digital Content Project Lead: Miguel Leonarte
Project Manager: Liz Napolitano Full-Service Project Management and Composition: Aptara®, Inc.
Senior Acquisitions Editor, Global Edition: Steven Jackson Interior Designer: Aptara®, Inc.
Senior Project Editor, Global Edition: Daniel Luiz Cover Designer: Lumina Datamatics®
Manager, Media Production, Global Edition: M. Vikram Kumar Cover Art: ©SergeBertasiusPhotography/Shutterstock
Senior Manufacturing Controller, Production, Global Edition:
Trudy Kimber
Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related
graphics published as part of the services for any purpose. All such documents and related graphics are provided “as is” without warranty of any kind.
Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and
conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shall
Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of
use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of
information available from the services.
The documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodically added to
the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s)
described herein at any time. Partial screen shots may be viewed in full within the software version specified.
Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. This book is not sponsored or
endorsed by or affiliated with the Microsoft Corporation.
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsonglobaleditions.com
© Pearson Education Limited 2016
The rights of Sunil Chopra and Peter Meindl to be identified as the authors of this work have been asserted by them in accordance with the Copyright,
Designs and Patents Act 1988.
Authorized adaptation from the United States edition, entitled Supply Chain Management: Strategy, Planning, and Operation, 6th edition,
ISBN 978-0-13-380020-3, by Sunil Chopra and Peter Meindl, published by Pearson Education © 2016.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, withouteither the prior written permission of the publisher or a license permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any
trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners.
ISBN 10: 1292093560
ISBN 13: 9781292093567
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
10 9 8 7 6 5 4 3 2 1
14 13 12 11 10
Typeset in Times LT Std Roman by Aptara®, Inc.
Printed and bound by Courier Kendalville in United States of America.
, Dedication
I would like to thank my colleagues at Kellogg for all I have learned from
them about logistics and supply chain management. I am grateful for the love
and encouragement that my parents, Krishan and Pushpa, and sisters, Sudha
and Swati, have always provided during every endeavor in my life. I thank my
children, Ravi and Rajiv, for the joy they have brought me. Finally, none of this
would have been possible without the constant love, caring, and support
of my wife, Maria Cristina.
—Sunil Chopra
I would like to thank three mentors—Sunil Chopra, Hau Lee, and Gerry
Lieberman—who have taught me a great deal. Thank you also to my parents
and sister for their love, and to my sons, Jamie and Eric, for making me smile
and teaching me what life is truly all about. Most important, I thank my wife,
Sarah, who makes life wonderful and whom I love with all my heart.
—Peter Meindl
About the Authors
Sunil Chopra
Sunil Chopra is the IBM Distinguished Professor of Operations Management and
Information Systems at the Kellogg School of Management. He has served as the interim
dean and senior associate dean for curriculum and teaching, and the codirector of the
MMM program, a joint dual-degree program between the Kellogg School of Manage-
ment and the McCormick School of Engineering at Northwestern University. He has a
PhD in operations research from SUNY at Stony Brook. Prior to joining Kellogg, he
taught at New York University and spent a year at IBM Research.
Professor Chopra’s research and teaching interests are in supply chain and logistics
management, operations management, and the design of telecommunication networks.
He has won several teaching awards at the MBA and Executive programs of Kellogg. He
has authored more than 40 papers and two books.
He has been a department editor for Management Science and an associate editor for Man-
ufacturing & Service Operations Management, Operations Research, and Decision Sciences
Journal. His recent research has focused on understanding supply chain risk and devising
effective risk mitigation strategies. He has also consulted for several firms in the area of supply
chain and operations management.
Peter Meindl
Peter Meindl is a portfolio manager with Kepos Capital in New York. Previously, he was
a research officer with Barclays Global Investors, a consultant with the Boston Consult-
ing Group and Mercer Management Consulting, and the director of strategy with
i2 Technologies. He holds PhD, MS, BS, and BA degrees from Stanford, and an MBA
from the Kellogg School of Management at Northwestern.
The first edition of this book won the prestigious Book of the Year award in 2002 from the
Institute of Industrial Engineers.
edition
Supply Chain Management
Strategy, Planning, and Operation
sixth edition
Sunil Chopra • Peter Meindl
, Sixth Edition
Global Edition
Supply Chain Management
Strategy, Planning, and Operation
Sunil Chopra
Kellogg School of Management
Peter Meindl
Kepos Capital
Boston Columbus Indianapolis New York San Francisco Amsterdam
Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto
Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
,Vice President, Business Publishing: Donna Battista Operations Specialist: Carol Melville
Acquisitions Editor: Dan Tylman Creative Director: Blair Brown
Editorial Assistant: Linda Seibert Albelli Art Director: Jon Boylan
Vice President, Product Marketing: Maggie Moylan Vice President, Director of Digital Strategy and Assessment:
Director of Marketing, Digital Services and Products: Paul Gentile
Jeanette Koskinas Manager of Learning Applications: Paul DeLuca
Executive Product Marketing Manager: Anne Fahlgren Digital Editor: Megan Rees
Executive Field Marketing Manager: Lenny Ann Raper Director, Digital Studio: Sacha Laustsen
Senior Strategic Marketing Manager: Erin Gardner Digital Studio Manager: Diane Lombardo
Team Lead, Program Management: Ashley Santora Digital Studio Project Manager: James Bateman
Program Manager: Claudia Fernandes Digital Content Team Lead: Noel Lotz
Team Lead, Project Management: Jeff Holcomb Digital Content Project Lead: Miguel Leonarte
Project Manager: Liz Napolitano Full-Service Project Management and Composition: Aptara®, Inc.
Senior Acquisitions Editor, Global Edition: Steven Jackson Interior Designer: Aptara®, Inc.
Senior Project Editor, Global Edition: Daniel Luiz Cover Designer: Lumina Datamatics®
Manager, Media Production, Global Edition: M. Vikram Kumar Cover Art: ©SergeBertasiusPhotography/Shutterstock
Senior Manufacturing Controller, Production, Global Edition:
Trudy Kimber
Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related
graphics published as part of the services for any purpose. All such documents and related graphics are provided “as is” without warranty of any kind.
Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and
conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. In no event shall
Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of
use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of
information available from the services.
The documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodically added to
the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s)
described herein at any time. Partial screen shots may be viewed in full within the software version specified.
Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. This book is not sponsored or
endorsed by or affiliated with the Microsoft Corporation.
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsonglobaleditions.com
© Pearson Education Limited 2016
The rights of Sunil Chopra and Peter Meindl to be identified as the authors of this work have been asserted by them in accordance with the Copyright,
Designs and Patents Act 1988.
Authorized adaptation from the United States edition, entitled Supply Chain Management: Strategy, Planning, and Operation, 6th edition,
ISBN 978-0-13-380020-3, by Sunil Chopra and Peter Meindl, published by Pearson Education © 2016.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, withouteither the prior written permission of the publisher or a license permitting restricted copying
in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any
trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners.
ISBN 10: 1292093560
ISBN 13: 9781292093567
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library.
10 9 8 7 6 5 4 3 2 1
14 13 12 11 10
Typeset in Times LT Std Roman by Aptara®, Inc.
Printed and bound by Courier Kendalville in United States of America.
, Dedication
I would like to thank my colleagues at Kellogg for all I have learned from
them about logistics and supply chain management. I am grateful for the love
and encouragement that my parents, Krishan and Pushpa, and sisters, Sudha
and Swati, have always provided during every endeavor in my life. I thank my
children, Ravi and Rajiv, for the joy they have brought me. Finally, none of this
would have been possible without the constant love, caring, and support
of my wife, Maria Cristina.
—Sunil Chopra
I would like to thank three mentors—Sunil Chopra, Hau Lee, and Gerry
Lieberman—who have taught me a great deal. Thank you also to my parents
and sister for their love, and to my sons, Jamie and Eric, for making me smile
and teaching me what life is truly all about. Most important, I thank my wife,
Sarah, who makes life wonderful and whom I love with all my heart.
—Peter Meindl
About the Authors
Sunil Chopra
Sunil Chopra is the IBM Distinguished Professor of Operations Management and
Information Systems at the Kellogg School of Management. He has served as the interim
dean and senior associate dean for curriculum and teaching, and the codirector of the
MMM program, a joint dual-degree program between the Kellogg School of Manage-
ment and the McCormick School of Engineering at Northwestern University. He has a
PhD in operations research from SUNY at Stony Brook. Prior to joining Kellogg, he
taught at New York University and spent a year at IBM Research.
Professor Chopra’s research and teaching interests are in supply chain and logistics
management, operations management, and the design of telecommunication networks.
He has won several teaching awards at the MBA and Executive programs of Kellogg. He
has authored more than 40 papers and two books.
He has been a department editor for Management Science and an associate editor for Man-
ufacturing & Service Operations Management, Operations Research, and Decision Sciences
Journal. His recent research has focused on understanding supply chain risk and devising
effective risk mitigation strategies. He has also consulted for several firms in the area of supply
chain and operations management.
Peter Meindl
Peter Meindl is a portfolio manager with Kepos Capital in New York. Previously, he was
a research officer with Barclays Global Investors, a consultant with the Boston Consult-
ing Group and Mercer Management Consulting, and the director of strategy with
i2 Technologies. He holds PhD, MS, BS, and BA degrees from Stanford, and an MBA
from the Kellogg School of Management at Northwestern.
The first edition of this book won the prestigious Book of the Year award in 2002 from the
Institute of Industrial Engineers.
