A phased approach to distribution network optimization given incremental supply chain change
Name
810126866-MIT.pdf
Description
Full printable version
Size
6.28 MB
Format
Adobe PDF
Checksum (MD5)
bf4ae7e4777666600760beeba4b96493
Author(s)
Riechel, Patrick
Advisor(s)
Donald Rosenfield and Chris Caplice.
Date Issued
2012
Publisher
Massachusetts Institute of Technology
Abstract
This thesis addresses the question of how to optimize a distribution network when the supply chain has undergone an incremental change. A case study is presented for Company A, a major global biotechnology company that recently acquired a new manufacturing facility in Ireland. Company A already has international operations throughout Europe and the rest of the world through its network of 3rd party logistics providers, wholesalers, and distributors, as well as its own Benelux-based international distribution center. It now seeks to optimize its current network by taking into consideration the possibility of distributing product directly out of Ireland and by potentially outsourcing some of the distribution currently sourced from its Benelux facility. The thesis uses a phased approach to optimizing the network in order to tackle the common enterprise challenges of 1) building consensus around the solution and 2) simultaneously learning about the problem while attempting to solve it in order to meet a compressed project schedule. Through a number of simplifications, the thesis reduces the problem scope to a level that both enables the use of this phased approach and provides for a less-complex and less time-intense analysis manageable within the given time frame. The unique characteristics of the biotechnology industry drive the analysis to closely study direct effects of and potential risks to availability and lead-time of the various distribution options while trading off distribution, packaging, inventory, and capital expenditure costs. The recommendations resulting from the analysis described in this thesis are used to inform Company A's future distribution strategy regarding additional warehousing capacities, the continued use of the Benelux facility, as well as potential strategic partnerships with 3rd party logistics service providers.
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, 2012.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 59-60).
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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