Perfecting visibility with retailer data
Name
898137337-MIT.pdf
Description
Full printable version
Size
7.59 MB
Format
Adobe PDF
Checksum (MD5)
9674f07f73a8feef2e14a1f4470f548d
Author(s)
Daniele Primavera
Shi, Hang
Advisor(s)
Jarrod Goentzel.
Date Issued
2014
Publisher
Massachusetts Institute of Technology
Abstract
This thesis investigates the utility of using retailer point of sales (POS) data in the production planning process of a consumer-packaged goods (CPG) manufacturing company. The quantitative measurements of utility include the improvement of production forecasting, reduction of inventory costs, and reduction of equipment changeover costs. Qualitatively, we evaluate the effectiveness of using POS to drive a more collaborative relationship between the retailer and the manufacturer. The POS data include items sold, store inventory, and warehouse inventory of a retail partner for specific stock keeping units (SKUs) produced by the manufacturer. We develop production-planning models by combining POS data with customer orders, current production plans, and existing inventory positions to optimize manufacturing and inventory costs. The results illustrate that if the aggregate volume of customer orders approximately equaled to that of the POS, then the integration of POS data into manufacturing planning offers opportunities to reduce production and inventory costs. The analysis also points to situations where POS data and customer orders vary significantly; in these situations the proposed production-planning model does not apply, but the POS data provide useful evidence for aligning plans between the manufacturer and the retailer.
Description
Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2014.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 66-67).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
Terms of Use
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