The production planning and inventory management of intermediate products for a pharmaceutical company
Name
232661147-MIT.pdf
Description
Full printable version
Size
22.56 MB
Format
Adobe PDF
Checksum (MD5)
3f0efe90b3ca8aacf52307df342d3620
Author(s)
Kok, Yixiong
Advisor(s)
Stephen C. Graves.
Date Issued
2007
Publisher
Massachusetts Institute of Technology
Abstract
TCG is a multinational pharmaceutical company. As part of its drive to stay lean and competitive, TCG hopes to effectively maximize its capital assets by reducing warehouse inventory. This thesis aims to reduce the inventory of intermediate products through the use of fixed demand rate production planning and inventory controls. The production planning model attempts to derive the optimal production cycle time based on demand rates, production rates and setup times to prevent stock outs. The optimal cycle time should provide the optimal inventory levels for the intermediate products. The production planning model stabilizes the fluctuations in inventory levels and outperforms TCG's production plan in 2008 by 115 pallet spaces. With an order-up-to policy, the inventory level is capped at a maximum level, preventing uncontrolled accumulation of inventory of the intermediate products. This will prevent stock outs and stabilize inventory levels. Using an order-up-to policy to minimize the inventory, a reduction of up to 1.8% can be achieved.
Description
Thesis (M. Eng.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering, 2007.
Includes bibliographical references (p. 66).
Subjects
Mechanical Engineering.
MIT Department
Massachusetts Institute of Technology. Department of Mechanical Engineering
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