Reducing wave cycle time at a multi-channel distribution center
Name
1051237596-MIT.pdf
Description
Full printable version
Size
11.17 MB
Format
Adobe PDF
Checksum (MD5)
7218d283c1a137b5e6d3c037f329099a
Author(s)
Wallach, Matthew Reno
Advisor(s)
Stephen Graves, Maria Yang, and David Simchi-Levi.
Date Issued
2018
Publisher
Massachusetts Institute of Technology
Abstract
Traditional brick and mortar retailers are being forced to adapt as consumer preferences shift towards online shopping. In response, many retailers are developing infrastructure and processes to handle the increased service levels (faster cycle time) that accompanies this digital volume. One challenge that arises during this transition is how to implement the new processes in existing, capital intensive, warehouses. This thesis presents methods for improving service performance by reducing wave cycle time in a large, multi-channel distribution center. By prioritizing digital consumers' orders, lower priority waves are consistently disrupted, which leads to extended wave cycle times and potentially delayed orders to wholesale customers. By analyzing historical data from distribution center operations, it is possible to test hypotheses and develop strategies for reducing cycle time. These hypotheses can then inform experiments to test the effects of operational changes. The impact of this work has been verified in two phases. In the first phase, improving transparency of lagging orders reduced average cycle time by 45%. In the second phase, the wave strategy for high priority orders was modified and resulted in an additional significant time savings and led to an increase in service performance, defined as shipped on time.
Description
Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, in conjunction with the Leaders for Global Operations Program at MIT, 2018.
Thesis: S.M., Massachusetts Institute of Technology, Department of Mechanical Engineering, in conjunction with the Leaders for Global Operations Program at MIT, 2018.
Cataloged from PDF version of thesis.
Includes bibliographical references (page 81).
Subjects
Sloan School of Management.
Mechanical Engineering.
Leaders for Global Operations Program.
MIT Department
Leaders for Global Operations Program at MIT
Massachusetts Institute of Technology. Department of Mechanical Engineering
Sloan School of Management
Terms of Use
MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.
Persistent DSpace Link
