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i
Supply Chain
Logistics
Management
ii
Johnson
Purchasing and Supply Management
Sixteenth Edition
PROJECT MANAGEMENT
Brown and Hyer
Managing Projects: A Team-Based Approach
MANAGEMENT SCIENCE
Hillier and Hillier
Introduction to Management Science: A Modeling and Case Studies Approach with
Spreadsheets
Sixth Edition
BUSINESS FORECASTING
Keating and Wilson
Forecasting and Predictive Analytics
Seventh Edition
OPERATIONS MANAGEMENT
Cachon and Terwiesch
Operations Management
Second Edition
Stevenson
Operations Management
Thirteenth Edition
BUSINESS MATH
Slater and Wittry
Practical Business Math Procedures
Thirteenth Edition
Second Edition
BUSINESS STATISTICS
Bowerman, O’Connell, Drougas, Duckworth, and Froelich
Business Statistics in Practice
Ninth Edition
McGuckian
Connect Master: Business Statistics
iii
Supply Chain
Logistics
Management
Fifth Edition
Donald J. Bowersox
David J. Closs
M. Bixby Cooper
John C. Bowersox
Michigan State University
iv
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2020 by
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ISBN 978-0-07-809664-8
MHID 0-07-809664-2
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v
Preface
Over the last eight decades, the discipline of business logistics has advanced
from the warehouse floor and transportation dock to the boardroom of
leading global enterprises. We have had the opportunity to be actively
involved in this evolution through research, education, and advising. Supply
Chain Logistics Management encompasses the development and
fundamentals of the logistics discipline within a supply chain framework. It
also presents our vision of the future for business logistics and supply chain
management and their role in enterprise competitiveness.
Although individually and collectively the four authors have written
extensively on various aspects of logistics and supply chain management,
the decision to initially write and subsequently revise Supply Chain
Logistics Management represents the synthesis of many years of research,
augmenting and, in many ways, supplanting earlier works of the authors
published by McGraw-Hill. The union of ideas presented in this text
provides an integrated supply chain framework for the study of logistics,
serves to expand the treatment of supply chain management by placing it
firmly in the context of integrated business strategy, and highlights the
increasing importance of logistics in the supply chains supporting a global
economy.
Logistics includes all the activities required to move product and
information to, from, and between partners in a supply chain. The supply
chain provides the framework for businesses and their suppliers to jointly
deliver goods, services, and information efficiently, effectively, relevantly,
and in a sustainable manner to consumers. Supply Chain Logistics
Management presents the mission, business processes, and strategies
needed to achieve integrated logistical management. We hope the text
achieves three fundamental objectives: (1) presents a comprehensive
description of existing logistical practices in a global economy, (2)
describes ways and means to apply logistics principles to achieve
competitive advantage, and (3) provides a conceptual approach for
integrating logistics as a core competency within enterprise supply chain
strategy.
This edition has benefited greatly from thoughtful suggestions from
students, colleagues, and reviewers. We note several changes and additions
to this new edition:
Incorporated a section in Chapter 1 that discusses the broad application of
logistics and supply chain management to include other applications beyond
movement of goods.
Incorporated considerations for value chain management in the text.
Reviewed supply chain information technology in Chapter 2 to provide a
broad perspective and then again reviewed the relevant technologies in the
application chapters.
Discussed regarding how consumer and technology disrupters will impact
logistics and supply chain management.
Condensed discussion of procurement and manufacturing into one chapter
focusing on strategy and interfaces with logistics.
Incorporated forecasting and planning into a single chapter focuses on
integrated operations planning.
Included updated materials regarding transportation pricing; negotiation;
regulation; and modern trends, challenges, and opportunities.
Synthesized the discussion of handling and packaging with warehousing.
Expanded the global strategy and operations chapter to include discussion of
compliance.
Expanded the discussion of supply chain network design to include
principles that can be applied in nontraditional settings and the major
drivers in supply chain design.
Discussed the future trends in logistics and supply chain management in the
final chapter.
viii
Over the past 53 years, the business executives who have attended the
annual Michigan State University Logistics Management Executive
Development Seminar have been exposed to the basic concepts presented in
the text and have given freely of their time and experience. We also
acknowledge the long-standing support to Michigan State Department of
Supply Chain Management, through the funding of the endowed chairs,
provided by the late John H. McConnell, founder of Worthington Industries,
and Rob Thull, who is the primary donor for the Bowersox-Thull Chair in
Logistics and Supply Chain Management.
The number of individuals involved in teaching logistics around the
world expands daily. To this group in general, and in particular to our
colleagues at Michigan State University, whose advice and assistance made
it possible to complete and enhance this text, we express our sincere
appreciation.
Teachers receive continuous inspiration from students over the years,
and in many ways the day of judgment in an academic career comes in the
seminar or classroom. We have been fortunate to have the counsel of many
outstanding young scholars who currently are making substantial impact on
the academic and business worlds. In particular, we appreciate the input of
students who have used this text in manuscript form and made suggestions
for improvement. We also acknowledge the contributions of Drs. Judith
Whipple, Stan Griffis, Yem Bolumole, and Thomas Goldsby, who
contributed extensively in case and concept development.
We would like to thank the following instructors for their thoughtful
contributions to the previous edition review: Gurkan Akalin, Joe T. Felan,
EunSu Lee, Penina Orenstein, Thomas Passero, James L. Patterson, Frank
R. Scheer, and George Young.
We wish to acknowledge the contributions of Felicia Kramer and
Pamela Kingsbury, for manuscript preparation on several earlier versions of
this text, and Cheryl Lundeen, who prepared many drafts of the
manuscripts. Without Felicia, Pam, and Cheryl, this long-published text in
its many variations would not be a reality.
With so much able assistance, it is difficult to offer excuses for any
shortcomings that might appear. Any faults are solely our responsibility.
David J. Closs
M. Bixby Cooper
John C. Bowersox
ix
Supplemental Features
Instructor Library
A wealth of information is available online through McGraw-Hill’s
Connect. In the Connect Instructor Library, you will have access to
supplementary materials specifically created for this text, such as:
Instructor Solutions Manual
PowerPoint Presentations
Problem Set Solutions
Case Solutions
Sample Syllabi
Sample Tests
Data Sets for Cases
Assurance of Learning
Many educational institutions today are focused on the notion of assurance
of learning, an important element of some accreditation standards. Supply
Chain Logistics Management is designed specifically to support your
assurance of learning initiatives with a simple, yet powerful, solution.
Each test bank and end-of-chapter question for Supply Chain Logistics
Management maps to a specific chapter learning goal listed in the text. You
can use the test bank software to easily query for learning goals that directly
relate to the learning objectives for your course. You then can use the
reporting features of the software to aggregate student results in similar
fashion, making the collection and presentation of assurance of learning
data simple and easy.
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