Inventory reduction : applying a pull ordering system to a distribution business
Name
56814864-MIT.pdf
Description
Full printable version
Size
3.69 MB
Format
Adobe PDF
Checksum (MD5)
9ef01f5170f23d69503d92dbe68a86f8
Author(s)
Chesborough, Amber J. (Amber June), 1977-
Advisor(s)
Charles Fine and Daniel Whitney.
Date Issued
2004
Publisher
Massachusetts Institute of Technology
Abstract
This thesis is a description of an internship project at an aerospace parts distribution company. The goal of the project was to reduce inventory by applying a pull ordering system to the distributor's value chain. The thesis provides background on the theory of "push" vs. "pull" systems, and a discussion of how pull systems can reduce inventory while maintaining or improving service level. Typically, pull systems are applied to situations of relatively frequent and constant demand. Using a model developed for the internship company, we demonstrate that a two-bin kanban refill system can be applied to reduce inventory by 50-60%, even given a situation of volatile demand. We describe the pilot project (currently in progress) intended to prove out the kanban system's performance, including the team composition, implementation plan, and perceived barriers to implementation. In conclusion, we reflect on the project's results and present suggestions for future improvement.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; and, (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2004.
Includes bibliographical references (leaf 32).
Subjects
Mechanical Engineering.
Sloan School of Management.
Leaders for Manufacturing Program.
MIT Department
Leaders for Manufacturing Program at MIT
Massachusetts Institute of Technology. Department of Mechanical Engineering
Sloan School of Management
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