Statistical process control approach to reduce the bullwhip effect
Name
184984821-MIT.pdf
Description
Full printable version
Size
6.52 MB
Format
Adobe PDF
Checksum (MD5)
1400a7c4dc2c223c32443ac2c0f625e0
Author(s)
Iyer, Harikumar
Prasad, Saurabh
Advisor(s)
Chris Caplice.
Date Issued
2007
Publisher
Massachusetts Institute of Technology
Abstract
The bullwhip effect is a pervasive problem in multi echelon supply chains that results in inefficient production operations and higher inventory levels. The causes of the bullwhip effect are well understood in industry and academia. Quantitative and qualitative solutions to attenuate this effect have been proposed in various research studies. In this research a quantitative solution in the form of a Statistical Process Control (SPC) based inventory management system is proposed that reduces the bullwhip effect while reducing inventory without compromising service level requirements for a variety of products. The strength of this methodology is in its effectiveness in reducing bullwhip for fast moving products in the mature phase of their lifecycles where improving production efficiency and lowering inventory investment are critical. However, fill rate issues are observed for slow moving products and therefore, the methodology is not recommended for such products. Finally, the application of this methodology to reduce the bullwhip effect is illustrated for a product family of a medical devices company. The results for the different classes of products in this family are discussed.
Description
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2007.
Includes bibliographical references (leaves 66-68).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
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