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Study of the role of Strategically Managed Inventory (SMI) in the Caterpillar supply chain

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dc.contributor.advisor Daniel Whitney and Stephen Graves. en_US Rowan, Brandon (Brandon Christopher) en_US
dc.contributor.other Leaders for Global Operations Program. en_US 2012-09-27T15:31:02Z 2012-09-27T15:31:02Z 2012 en_US 2012 en_US
dc.description Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Global Operations Program at MIT, 2012. en_US
dc.description Cataloged from PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 75-78). en_US
dc.description.abstract Strategic Managed Inventory (SMI) is an inventory replenishment process deployed by Caterpillar that blends elements of Vendor Managed Inventory (VMI) and Collaborative Planning, Forecasting, and Replenishment (CPFR). The SMI process calls for Caterpillar's suppliers to control the material replenishment process and hold inventory in strategic locations. SMI is designed such that Caterpillar and the supplier collaborate on replenishment plans and forecasts to ensure that material moves efficiently through the supply chain. The process is aimed at increasing supply chain flexibility, responsiveness and performance. This paper examines the current deployment of the SMI process in Caterpillar's supply chain in an effort to determine how the company can go about better leveraging this capability. It proposes potential frameworks for the identification of future SMI opportunities and part suitability. It also looks at the drivers behind SMI in cost evaluation. While there are some challenges identified with the process by the study, the study concludes that the SMI process does lead to benefits for Caterpillar and its suppliers. It suggests that these benefits could be better leveraged by growing the capability slowly using the most proficient suppliers, establishing oversight for the SMI process, increasing supplier vetting, and crafting a way to gain visibility into current SMI usage. en_US
dc.description.statementofresponsibility by Brandon Rowan. en_US
dc.format.extent 78 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 en_US
dc.subject Sloan School of Management. en_US
dc.subject Mechanical Engineering. en_US
dc.subject Leaders for Global Operations Program. en_US
dc.title Study of the role of Strategically Managed Inventory (SMI) in the Caterpillar supply chain en_US
dc.title.alternative Study of the role of SMI in the Caterpillar supply chain en_US
dc.type Thesis en_US S.M. en_US M.B.A. en_US
dc.contributor.department Sloan School of Management. en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Mechanical Engineering. en_US
dc.contributor.department Leaders for Global Operations Program. en_US
dc.identifier.oclc 810338678 en_US

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