Warehouse network design for a commodity chemicals manufacturer
Name
962731374-MIT.pdf
Description
Full printable version
Size
3.62 MB
Format
Adobe PDF
Checksum (MD5)
b05f86d24179ea6423e2ad5800a0f054
Author(s)
Pornnoparat, Dangfun
Advisor(s)
James B. Rice, Jr.
Date Issued
2016
Publisher
Massachusetts Institute of Technology
Abstract
The choice of the location and number of warehouses is a strategic-level decision that can have a long- lasting impact on a firm's performance. Warehouse locations and their capacities determine how products flow within a firm's supply chain, which directly influences a firm's performance in terms of cost and service level. This research applies a mixed integer linear programming method to evaluate factors that drive existing inefficiencies in a warehouse network belonging to a Thai commodity chemicals manufacturer. The objective is to determine an optimal warehouse network configuration that minimizes the firm's total transportation and warehousing cost. Inventory turns and storage capacity constraints are found to be the key drivers of inefficiencies. The optimal solution suggests that the company should retain fewer warehouses and expand capacities at these locations. As the company continues to grow, the potential benefit from expansion becomes greater.
Description
Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016.
Cataloged from PDF version of thesis.
Includes bibliographical references (page 31).
Subjects
Supply Chain Management Program.
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Supply Chain Management Program
Terms of Use
MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided.
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