Developing a framework for global distribution in the biopharmaceutical industry
Name
725921852-MIT.pdf
Description
Full printable version
Size
7.39 MB
Format
Adobe PDF
Checksum (MD5)
442ba0f52562c3b4cdf75567a7ef0f81
Author(s)
Sekar, Swaminathan
Advisor(s)
Chris Caplice and Donald Rosenfield.
Date Issued
2010
Publisher
Massachusetts Institute of Technology
Abstract
This paper addresses two basic questions about the outbound distribution operations with a case study example of a large biopharmaceutical company. First, the research work focuses on developing an efficient, scalable truck distribution system to help reduce transportation cost, while maintaining the service level and capacity constraints. In doing so, the paper examines the Vehicle Routing Problem (VRP), a NP-hard combinatorial optimization in the context of biopharmaceutical customer demand fulfillment process. The thesis presents a model developed to perform distribution center decisions, with Amgen North America market as case study. The second question addressed in this paper is a study on the number of distribution centers and possible locations. In a market with a certain geographic distribution of customers, and a desired number of distribution centers to operate, the analysis compares the different potential locations from standpoint of transportation cost, inventory level and site loading. The model is well suited for a company expanding into a new market to make decision on location of distribution centers to cater to a certain spread of customers in that region. The paper presents analyses for a real case study to provide contextual example, as well as more broad recommendations in the field. Both models are scalable to markets outside North America for similar companies.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; and, (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2010.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 62-63).
Subjects
Electrical Engineering and Computer Science.
Sloan School of Management.
Leaders for Manufacturing Program.
MIT Department
Leaders for Manufacturing Program at MIT
Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science
Sloan School of Management
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