Practical example of developing and implementing an optimization & scenario planning tool
Name
891569532-MIT.pdf
Description
Full printable version
Size
5.63 MB
Format
Adobe PDF
Checksum (MD5)
e658819c2f17c97d69407f85aaa27a04
Author(s)
Guertin, Jane
Advisor(s)
David Simchi-Levi and Stephen Graves.
Date Issued
2014
Publisher
Massachusetts Institute of Technology
Abstract
There is significant complexity facing the Global Footwear Planning team when sourcing production, especially for sandals. The challenges include increasing manufacturing costs coupled with a changing tariff landscape and a high degree of complexity to produce the products. This thesis provides a practical example of the use of an optimization model for determining where to produce, and how much to produce, of each product, including the ability to perform strategic what-if scenarios. The model is based on minimizing the total landed cost for each product. This includes the manufacturing, transportation, holding, and tariff costs. The initial pilot model results suggested a 4-11% decrease in spending for a given year. This model provides the starting point for additional work to improve optimization in the sourcing group. The implementation of this model reinforces the notion of how much support is needed in an organization to change processes and implement new software models. Future work should include the addition of simulation, as the data are highly variable at the decision point.
Description
Thesis: M.B.A., Massachusetts Institute of Technology, Sloan School of Management, 2014. In conjunction with the Leaders for Global Operations Program at MIT.
Thesis: S.M., Massachusetts Institute of Technology, Engineering Systems Division, 2014. In conjunction with the Leaders for Global Operations Program at MIT.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 64-65).
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
Terms of Use
M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.
Persistent DSpace Link
