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Reducing transportation costs and inventory shrinkage in the Washington State tree fruit industry

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dc.contributor.advisor Chris Caplice. en_US
dc.contributor.author Foreman, James Sterling en_US
dc.contributor.other Massachusetts Institute of Technology. Engineering Systems Division. en_US
dc.date.accessioned 2010-03-25T14:53:37Z
dc.date.available 2010-03-25T14:53:37Z
dc.date.copyright 2009 en_US
dc.date.issued 2009 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/53050
dc.description Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. en_US
dc.description Includes bibliographical references (leaves 91-95). en_US
dc.description.abstract Perishability and stock-outs are two sources of inventory inefficiency in the Washington State tree fruit industry. This thesis measures the size of these inefficiencies in terms of dollars per box, and describes five solutions, four qualitative and one quantitative, that seek to address them. To establish the magnitude of the inefficiencies, I regress various fruit characteristics on a set of sales data, thereby ascertaining the relationship between a fruit's price and its age. I find that the industry loses 5% to 12% of potential revenue due to perishability and propose four qualitative policies designed to reduce these losses. Next, I develop an operational management tool in the form of a mixed-integer optimization model which can be used to make optimal sourcing decisions during stock-out events. I find that the potential savings from improved sourcing decisions are between $0.01 and 0.02 per box. These results confirm that the costs and foregone revenue associated with inventory management are significant and merit the tree fruit industry's attention. en_US
dc.description.statementofresponsibility by Jame Sterling Foreman. en_US
dc.format.extent 105 leaves en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582 en_US
dc.subject Engineering Systems Division. en_US
dc.title Reducing transportation costs and inventory shrinkage in the Washington State tree fruit industry en_US
dc.type Thesis en_US
dc.description.degree M.Eng.in Logistics en_US
dc.contributor.department Massachusetts Institute of Technology. Engineering Systems Division. en_US
dc.identifier.oclc 496822240 en_US


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