Applying a MEIO approach to manage Intel's VMI Hub Supply
Name
753711337-MIT.pdf
Description
Full printable version
Size
15.92 MB
Format
Adobe PDF
Checksum (MD5)
84bdf89de04747ee2af92a385a2d9c03
Author(s)
Hsieh, Min Fang, M.B.A. Massachusetts Institute of Technology
Advisor(s)
Stephen Graves and David Simchi-Levi.
Alternative Title
Applying a Multi Echelon Inventory Optimization approach to manage Intel's Vendor Managed Inventory Hub Supply
Date Issued
2011
Publisher
Massachusetts Institute of Technology
Abstract
To improve customer service levels, Intel implemented Vendor Managed Inventory (VMI) hub process for its Central Processing Unit (CPU) Finished Good (FG) inventory, which allows Intel's customers to pull inventory directly from the hubs. However, this process change resulted in increased inventory in Intel's overall supply chain and thus increased inventory costs. This work investigates reducing inventory cost by applying a Multi Echelon Inventory Optimization (MEIO) approach to manage Intel's VMI Hub Supply Chain. The goal is to evaluate the hypothesis that an MEIO approach for inventory management and replenishment will result in a more efficient use of FG inventory. To assess the hypothesis, we developed a three-step modeling framework. In each step, we conducted several experiments, applying the MEIO model approach, to determine the optimal CPU FG inventory stocking levels needed to meet customer service level goals for different products and locations. The study was concluded with quantitative and qualitative business impact of implementing an MEIO approach for Intel CPU FG Supply Chain. The MEIO modeling result shows significant inventory reduction opportunities and were presented to the Senior Management team of Intel Supply Chain.
Description
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2011.
Cataloged from PDF version of thesis. Page 100 blank.
Includes bibliographical references (p. 98-99).
Subjects
Sloan School of Management.
Engineering Systems Division.
Leaders for Global Operations Program.
MIT Department
Leaders for Global Operations Program at MIT
Massachusetts Institute of Technology. Engineering Systems Division
Sloan School of Management
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