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Optimization of ship-pack in a two-echelon distribution system

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dc.contributor.advisor Stephen C. Graves. en_US
dc.contributor.author Wen, Naijun en_US
dc.contributor.other Massachusetts Institute of Technology. Computation for Design and Optimization Program. en_US
dc.date.accessioned 2011-03-24T20:24:10Z
dc.date.available 2011-03-24T20:24:10Z
dc.date.copyright 2010 en_US
dc.date.issued 2010 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/61903
dc.description Thesis (S.M.)--Massachusetts Institute of Technology, Computation for Design and Optimization Program, 2010. en_US
dc.description Cataloged from PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 61-62). en_US
dc.description.abstract The traditional Economic Order Quantity (EOQ) model ignores the physical limitations of distribution practices. Very often distribution centers (DC) have to deliver merchandise in manufacturer-specified packages, which can impose restrictions on the application of the economic order quantity. These manufacturer-specified packages, or ship-packs, include cases (e.g., cartons containing 24 or 48 units), inners (packages of 6 or 8 units) and eaches (individual units). For each Stock Keeping Unit (SKU), a retailer decides which of these ship-pack options to use when replenishing its retail stores. Working with a major US retailer, we have developed a cost model to help determine the optimum warehouse ship-pack. Besides recommending the most economical ship-pack, the model is also capable of identifying candidates for warehouse dual-slotting, i.e., two picking modules for the same SKU that carry two different pack sizes. We find that SKUs whose sales volumes vary greatly over time will benefit more from dual-slotting. Finally, we extend our model to investigate the ideal case configuration for a particular SKU, that is, the ideal size for an inner package. en_US
dc.description.statementofresponsibility by Naijun Wen. en_US
dc.format.extent 62 p. 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 Computation for Design and Optimization Program. en_US
dc.title Optimization of ship-pack in a two-echelon distribution system en_US
dc.type Thesis en_US
dc.description.degree S.M. en_US
dc.contributor.department Massachusetts Institute of Technology. Computation for Design and Optimization Program. en_US
dc.identifier.oclc 706826069 en_US


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