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1 Introduction to Operations Management |
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1 | (24) |
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1 | (1) |
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The Customer's View of the World |
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2 | (3) |
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A Firm's Strategic Trade-Offs |
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5 | (4) |
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9 | (1) |
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Overcoming Inefficiencies: The Three System Inhibitors |
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10 | (3) |
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Operations Management at Work |
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13 | (1) |
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Operations Management: An Overview of the Book |
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14 | (3) |
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17 | (1) |
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Summary of Learning Objectives |
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17 | (1) |
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18 | (1) |
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19 | (1) |
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20 | (1) |
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Problems and Applications |
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21 | (3) |
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24 | (1) |
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2 Introduction to Processes |
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25 | (15) |
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25 | (1) |
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Process Definition, Scope, and Flow Units |
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26 | (2) |
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Three Key Process Metrics: Inventory, Flow Rate, and Flow Time |
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28 | (2) |
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Little's Law---Linking Process Metrics Together |
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30 | (3) |
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Connections: Little's Law |
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33 | (1) |
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33 | (1) |
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Summary of Learning Objectives |
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33 | (1) |
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34 | (1) |
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34 | (1) |
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34 | (1) |
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35 | (1) |
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Problems and Applications |
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36 | (3) |
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39 | (1) |
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40 | (27) |
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40 | (1) |
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How to Draw a Process Flow Diagram |
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41 | (4) |
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Capacity for a One-Step Process |
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45 | (2) |
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How to Compute Flow Rate, Utilization, and Cycle Time |
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47 | (3) |
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How to Analyze a Multistep Process and Locate the Bottleneck |
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50 | (4) |
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The Time to Produce a Certain Quantity |
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54 | (2) |
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56 | (1) |
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Summary of Learning Objectives |
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57 | (1) |
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58 | (1) |
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59 | (1) |
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60 | (2) |
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Problems and Applications |
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62 | (4) |
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66 | (1) |
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66 | (1) |
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67 | (36) |
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67 | (2) |
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Measures of Process Efficiency |
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69 | (4) |
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How to Choose a Staffing Level to Meet Demand |
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73 | (7) |
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Off-Loading the Bottleneck |
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80 | (1) |
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81 | (2) |
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The Pros and Cons of Specialization |
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83 | (1) |
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Connections: The History of Specialization |
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84 | (1) |
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Understanding the Financial Impact of Process Improvements |
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85 | (4) |
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89 | (1) |
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Summary of Learning Objectives |
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90 | (1) |
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91 | (1) |
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92 | (1) |
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93 | (1) |
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94 | (4) |
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Problems and Applications |
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98 | (3) |
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101 | (1) |
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102 | (1) |
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5 Process Analysis with Multiple Flow Units |
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103 | (36) |
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103 | (1) |
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Generalized Process Flow Patterns |
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104 | (4) |
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How to Find the Bottleneck in a General Process Flow |
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108 | (4) |
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Attrition Losses, Yields, and Scrap Rates |
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112 | (4) |
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116 | (2) |
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Flow Unit-Dependent Processing Times |
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118 | (6) |
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124 | (3) |
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127 | (1) |
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Summary of Learning Objectives |
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128 | (1) |
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129 | (1) |
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129 | (2) |
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131 | (5) |
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Problems and Applications |
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136 | (1) |
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137 | (1) |
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138 | (1) |
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139 | (35) |
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139 | (1) |
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Various Forms of the Learning Curve |
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140 | (3) |
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Connections: Learning Curves in Sports |
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143 | (1) |
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144 | (2) |
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Estimating the Learning Curve Using a Linear Log-Log Graph |
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146 | (4) |
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Using Learning Curve Coefficients to Predict Costs |
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150 | (3) |
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Using Learning Curve Coefficients to Predict Cumulative Costs |
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153 | (1) |
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Employee Turnover and Its Effect on Learning |
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154 | (3) |
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Standardization as a Way to Avoid "Relearning" |
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157 | (2) |
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Connections: Process Standardization at Intel |
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159 | (1) |
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160 | (2) |
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162 | (1) |
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Summary of Learning Objectives |
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163 | (1) |
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164 | (1) |
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165 | (1) |
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165 | (3) |
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168 | (3) |
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Problems and Applications |
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171 | (2) |
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Case: Ford's Highland Plant |
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173 | (1) |
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173 | (1) |
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174 | (36) |
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174 | (1) |
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175 | (3) |
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Capacity of a Process with Setups |
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178 | (4) |
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Batches and the Production Cycle |
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178 | (1) |
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Capacity of the Setup Resource |
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178 | (2) |
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Capacity and Flow Rate of the Process |
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180 | (2) |
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Utilization in a Process with Setups |
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182 | (3) |
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Connections: U.S. Utilization |
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185 | (1) |
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Inventory in a Process with Setups |
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185 | (4) |
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Choose the Batch Size in a Process with Setups |
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189 | (1) |
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Setup Times and Product Variety |
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190 | (3) |
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193 | (1) |
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Managing Processes with Setup Times |
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194 | (3) |
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Why Have Setup Times: The Printing Press |
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194 | (1) |
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Reduce Variety or Reduce Setups: SMED |
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195 | (1) |
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Smooth the Flow: Heijunka |
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196 | (1) |
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197 | (1) |
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198 | (1) |
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Summary of Learning Objectives |
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199 | (1) |
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200 | (1) |
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201 | (1) |
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201 | (2) |
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203 | (2) |
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Problems and Applications |
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205 | (4) |
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209 | (1) |
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8 Lean Operations and the Toyota Production System |
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210 | (40) |
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210 | (2) |
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212 | (1) |
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Wasting Time at a Resource |
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212 | (6) |
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Wasting Time of a Flow Unit |
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218 | (1) |
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The Architecture of the Toyota Production |
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219 | (1) |
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TPS Pillar 1 Single-Unit Flow and Just-in-Time Production |
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220 | (10) |
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222 | (3) |
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Transferring on a Piece-by-Piece Basis |
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225 | (2) |
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227 | (1) |
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228 | (2) |
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TPS Pillar 2 Expose Problems and Solve Them When They Occur: Detect-Stop-Alert (Jidoka) |
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230 | (4) |
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231 | (1) |
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Jidoka: Detect-Stop-Alert |
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232 | (2) |
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Root-Cause Problem Solving and Defect Prevention |
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234 | (1) |
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234 | (1) |
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Summary of Learning Objectives |
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235 | (2) |
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237 | (1) |
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238 | (1) |
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239 | (3) |
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242 | (4) |
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Problems and Applications |
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246 | (2) |
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248 | (1) |
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249 | (1) |
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9 Quality and Statistical Process Control |
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250 | (42) |
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250 | (1) |
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The Statistical Process Control Framework |
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251 | (4) |
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Connections: Lost Luggage |
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255 | (1) |
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255 | (1) |
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Determining a Capability Index |
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256 | (3) |
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Predicting the Probability of a Defect |
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259 | (2) |
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Setting a Variance Reduction Target |
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261 | (1) |
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Process Capability Summary and Extensions |
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262 | (1) |
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Connections: Apple iPhone Bending |
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263 | (1) |
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264 | (3) |
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Investigating Assignable Causes |
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267 | (4) |
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How to Eliminate Assignable Causes and Make the Process More Robust |
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271 | (1) |
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Connections: Left and Right on a Boat |
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272 | (1) |
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Defects with Binary Outcomes: Event Trees |
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272 | (3) |
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Capability Evaluation for Discrete Events |
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272 | (3) |
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Defects with Binary Outcomes: p-Charts |
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275 | (1) |
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Connections: Some free cash from Citizens Bank? |
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276 | (1) |
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277 | (1) |
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Summary of Learning Objectives |
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278 | (1) |
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279 | (2) |
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281 | (1) |
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281 | (3) |
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284 | (4) |
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Problems and Applications |
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288 | (2) |
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Case: The Production of M&M's |
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290 | (1) |
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291 | (1) |
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10 Introduction to Inventory Management |
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292 | (24) |
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292 | (1) |
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293 | (5) |
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293 | (1) |
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Inventory Management Capabilities |
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294 | (1) |
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Reasons for Holding Inventory |
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295 | (3) |
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How to Measure Inventory: Days-of-Supply and Turns |
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298 | (3) |
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298 | (1) |
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299 | (1) |
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300 | (1) |
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Connections: U.S. Inventory |
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301 | (1) |
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Evaluate Inventory Turns and Days-of-Supply from Financial Reports |
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302 | (5) |
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Inventory Stockout and Holding Costs |
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304 | (1) |
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304 | (1) |
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305 | (1) |
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Inventory Holding Cost Percentage |
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306 | (1) |
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Inventory Holding Cost per Unit |
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306 | (1) |
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307 | (1) |
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Summary of Learning Objectives |
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308 | (1) |
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309 | (1) |
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310 | (1) |
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310 | (1) |
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311 | (2) |
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Problems and Applications |
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313 | (2) |
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Case: Linking Turns to Gross Margin |
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315 | (1) |
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11 Supply Chain Management |
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316 | (1) |
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316 | (1) |
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Supply Chain Structure and Roles |
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317 | (1) |
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Tier 2 Suppliers, Tier 1 Suppliers, and Manufacturers |
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317 | (2) |
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Distributors and Retailers |
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319 | (2) |
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Metrics of Supply Chain Performance |
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321 | (1) |
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321 | (2) |
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323 | (1) |
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324 | (3) |
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324 | (1) |
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325 | (2) |
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Sources of Variability in a Supply Chain |
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327 | (9) |
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Variability Due to Demand: Level, Variety, and Location |
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327 | (2) |
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Variability Due to the Bullwhip Effect |
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329 | (4) |
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Variability Due to Supply Chain Partner Performance |
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333 | (2) |
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Variability Due to Disruptions |
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335 | (1) |
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336 | (7) |
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336 | (3) |
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339 | (4) |
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343 | (1) |
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344 | (3) |
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344 | (3) |
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347 | (4) |
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348 | (3) |
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351 | (2) |
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353 | (1) |
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Summary of Learning Objectives |
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353 | (1) |
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354 | (2) |
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356 | (1) |
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356 | (2) |
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358 | (2) |
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Problems and Applications |
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360 | (1) |
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360 | (2) |
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12 Inventory Management with Steady Demand |
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362 | (27) |
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362 | (1) |
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The Economic Order Quantity |
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363 | (3) |
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The Economic Order Quantity Model |
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364 | (2) |
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366 | (5) |
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367 | (2) |
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369 | (1) |
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EOQ Cost and Cost per Unit |
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370 | (1) |
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Economies of Scale and Product Variety |
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371 | (3) |
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Connections: Girl Scout Cookies |
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374 | (1) |
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Quantity Constraints and Discounts |
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374 | (6) |
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374 | (2) |
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376 | (4) |
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380 | (1) |
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Summary of Learning Objectives |
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381 | (1) |
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381 | (1) |
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382 | (1) |
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382 | (1) |
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383 | (2) |
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Problems and Applications |
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385 | (2) |
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387 | (2) |
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13 Inventory Management with Perishable Demand |
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389 | (57) |
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389 | (1) |
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390 | (13) |
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O'Neill's Order Quantity Decision |
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391 | (4) |
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The Objective of and Inputs to the Newsvendor Model |
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395 | (1) |
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396 | (2) |
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How to Determine the Optimal Order Quantity |
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398 | (5) |
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Connections: Flexible Spending Accounts |
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403 | (1) |
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Newsvendor Performance Measures |
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404 | (7) |
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404 | (3) |
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407 | (1) |
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408 | (1) |
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In-Stock and Stockout Probabilities |
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409 | (2) |
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Order Quantity to Achieve a Service Level |
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411 | (1) |
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Mismatch Costs in the Newsvendor Model |
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412 | (5) |
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Strategies to Manage the Newsvendor Environment: Product Pooling, Quick Response, and Make-to-Order |
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417 | (9) |
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417 | (5) |
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422 | (2) |
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424 | (2) |
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Connections: Make-to-Order-Dell to Amazon |
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426 | (1) |
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427 | (1) |
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Summary of Learning Objectives |
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427 | (1) |
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428 | (2) |
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430 | (1) |
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430 | (3) |
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433 | (3) |
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Problems and Applications |
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436 | (7) |
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Case: Le Club Francias du Vin |
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443 | (2) |
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445 | (1) |
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14 Inventory Management with Frequent Orders |
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446 | (41) |
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446 | (1) |
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447 | (2) |
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449 | (6) |
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Design of the Order-up-to Model |
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449 | (1) |
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The Order-up-to Level and Ordering Decisions |
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450 | (1) |
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451 | (4) |
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455 | (1) |
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456 | (5) |
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Expected On-Hand Inventory |
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456 | (3) |
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In-Stock and Stockout Probability |
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459 | (1) |
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Expected On-Order Inventory |
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460 | (1) |
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Choosing an Order-up-to Level |
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461 | (2) |
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Inventory and Service in the Order-up-to Level Model |
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463 | (3) |
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Improving the Supply Chain |
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466 | (7) |
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466 | (3) |
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469 | (2) |
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471 | (2) |
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473 | (1) |
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Summary of Learning Objectives |
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474 | (1) |
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475 | (1) |
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475 | (1) |
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476 | (3) |
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479 | (2) |
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Problems and Applications |
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481 | (1) |
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Case: Warkworth Furniture |
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482 | (2) |
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484 | (3) |
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487 | (41) |
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487 | (2) |
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489 | (3) |
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Connections: Predicting the Future? |
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492 | (1) |
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Evaluating the Quality of a Forecast |
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493 | (4) |
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Eliminating Noise from Old Data |
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497 | (6) |
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497 | (1) |
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498 | (1) |
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Exponential Smoothing Method |
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499 | (3) |
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502 | (1) |
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Time Series Analysis---Trends |
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503 | (6) |
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Time Series Analysis---Seasonality |
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509 | (66) |
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Expert Panels and Subjective Forecasting |
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575 | (2) |
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Sources of Forecasting Biases |
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517 | (1) |
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517 | (1) |
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Summary of Learning Objectives |
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518 | (1) |
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519 | (1) |
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520 | (1) |
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521 | (1) |
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522 | (3) |
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Problems and Applications |
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525 | (2) |
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Case: International Arrivals |
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527 | (1) |
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Literature/Further Reading |
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527 | (1) |
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16 Service Systems with Patient Customers |
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528 | (43) |
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528 | (1) |
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Queues When Demand Exceeds Supply |
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529 | (4) |
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530 | (1) |
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531 | (1) |
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532 | (1) |
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533 | (1) |
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Connections: Traffic and Congestion Pricing |
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533 | (1) |
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Queues When Demand and Service Rates Are Variable---One Server |
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534 | (11) |
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The Arrival and Service Processes |
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537 | (3) |
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A Queuing Model with a Single Server |
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540 | (2) |
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542 | (1) |
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Predicting Time in Queue, Tq; Time in Service; and Tote Time in the System |
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543 | (1) |
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Predicting the Number of Customers Waiting and in Service |
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543 | (1) |
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The Key Drivers of Waiting Time |
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544 | (1) |
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Connections: The Psychology of Waiting |
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545 | (2) |
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Queues When Demand and Service Rates Are Variable---Multiple Servers |
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547 | (5) |
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Utilization, the Number of Servers, and Stable Queues |
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548 | (3) |
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Predicting Waiting Time in Queue, Tq; Waiting Time in Service; and Total Time in the System |
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551 | (1) |
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Predicting the Number of Customers Waiting and in Service |
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551 | (1) |
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Connections: Self-Service Queues |
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552 | (1) |
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Queuing System Design---Economies of Scale and Pooling |
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553 | (5) |
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555 | (3) |
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Connections: The Fast-Food Drive-Through |
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558 | (1) |
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559 | (1) |
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Summary of Learning Objectives |
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560 | (1) |
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561 | (1) |
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561 | (1) |
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562 | (2) |
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564 | (2) |
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Problems and Applications |
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566 | (3) |
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569 | (2) |
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17 Service Systems with Impatient Customers |
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571 | (1) |
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571 | (1) |
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Lost Demand in Queues with No Buffers |
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572 | (1) |
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Connections: Ambulance Diversion |
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573 | (2) |
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574 | (1) |
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Connections: Agner Krarup Erlang |
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575 | (7) |
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Capacity and Implied Utilization |
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576 | (1) |
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576 | (1) |
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Percentage of Time All Servers Are Busy and the Denial of Service Probability |
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577 | (2) |
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Amount of Lost Demand, the Flow Rate, Utilization, and Occupied Resources |
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579 | (2) |
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581 | (1) |
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Managing a Queue with Impatient Customers: Economies of Scale, Pooling, and Buffers |
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582 | (7) |
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582 | (2) |
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584 | (2) |
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586 | (3) |
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Lost Capacity Due to Variability |
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589 | (4) |
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593 | (1) |
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Summary of Learning Objectives |
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594 | (1) |
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594 | (1) |
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595 | (1) |
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596 | (1) |
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597 | (2) |
|
Problems and Applications |
|
|
599 | (1) |
|
|
600 | (1) |
|
|
601 | (2) |
|
Appendix 17A Erlang Loss Tables |
|
|
603 | (4) |
|
18 Scheduling to Prioritize Demand |
|
|
607 | (37) |
|
|
607 | (1) |
|
Scheduling Timeline and Applications |
|
|
608 | (62) |
|
Resource Scheduling---Shortest Processing Time |
|
|
670 | (7) |
|
|
611 | (1) |
|
First-Come-First-Served vs. Shortest Processing Time |
|
|
611 | (5) |
|
Limitations of Shortest Processing Time |
|
|
616 | (1) |
|
Resource Scheduling with Priorities---Weighted Shortest Processing Time |
|
|
617 | (4) |
|
Connections: Net Neutrality |
|
|
621 | (1) |
|
Resource Scheduling with Due Dates---Earliest Due Date |
|
|
622 | (3) |
|
|
625 | (2) |
|
Reservations and Appointments |
|
|
627 | (6) |
|
Scheduling Appointments with Uncertain Processing Times |
|
|
628 | (2) |
|
|
630 | (3) |
|
|
633 | (2) |
|
|
635 | (1) |
|
Summary of Learning Objectives |
|
|
635 | (1) |
|
|
636 | (1) |
|
|
637 | (1) |
|
|
637 | (2) |
|
|
639 | (2) |
|
Problems and Applications |
|
|
641 | (2) |
|
|
643 | (1) |
|
|
643 | (1) |
|
|
644 | (37) |
|
|
644 | (1) |
|
Creating a Dependency Matrix for the Project |
|
|
645 | (4) |
|
|
649 | (2) |
|
|
651 | (3) |
|
|
654 | (3) |
|
|
657 | (2) |
|
Uncertainty in Activity Times and Iteration |
|
|
659 | (5) |
|
|
659 | (3) |
|
|
662 | (1) |
|
Unknown Unknowns (Unk-unks) |
|
|
662 | (2) |
|
Project Management Objectives |
|
|
664 | (1) |
|
Reducing a Project's Completion Time |
|
|
665 | (1) |
|
|
666 | (2) |
|
|
668 | (1) |
|
Summary of Learning Objectives |
|
|
668 | (2) |
|
|
670 | (1) |
|
|
671 | (1) |
|
|
672 | (2) |
|
|
674 | (3) |
|
Problems and Applications |
|
|
677 | (3) |
|
Case: Building a House in Three Hours |
|
|
680 | (1) |
|
|
680 | (1) |
|
Literature/Further Reading |
|
|
680 | (1) |
|
20 New Product Development |
|
|
681 | (1) |
|
|
681 | (3) |
|
|
684 | (1) |
|
Connections: Innovation at Apple |
|
|
685 | (2) |
|
The Product Development Process |
|
|
687 | (1) |
|
|
688 | (5) |
|
Attributes and the Kano Model |
|
|
688 | (2) |
|
Identifying Customer Needs |
|
|
690 | (1) |
|
|
691 | (2) |
|
|
693 | (1) |
|
|
693 | (1) |
|
Connections: Crashing Cars |
|
|
694 | (6) |
|
Generating Product Concepts Using Attribute-Based Decomposition |
|
|
694 | (2) |
|
Generating Product Concepts Using User Interaction-Based Decomposition |
|
|
696 | (3) |
|
|
699 | (1) |
|
Rapid Validation/Experimentation |
|
|
700 | (2) |
|
Connections: The Fake Back-end and the Story of the First Voice Recognition Software |
|
|
702 | (1) |
|
|
703 | (2) |
|
|
705 | (2) |
|
Summary of Learning Objectives |
|
|
707 | (1) |
|
|
708 | (2) |
|
|
710 | (1) |
|
|
710 | (2) |
|
|
712 | (4) |
|
Problems and Applications |
|
|
716 | (2) |
|
Case: Innovation at Toyota |
|
|
718 | (1) |
|
|
718 | (1) |
Glossary |
|
719 | (14) |
Index |
|
733 | |