An Analytical Approach to Inventory Management for Telecommunications Network Equipment
Name
cutlip-mcutlip-mba-sloan-2021-thesis.pdf
Description
Thesis PDF
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15.68 MB
Format
Adobe PDF
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0a7c79cbdd5f3e16eda6286749d464f2
Author(s)
Cutlip, Margaret G.
Advisor(s)
Welsch, Roy
Anthony, Brian W.
Date Issued
June 2021
Publisher
Massachusetts Institute of Technology
Abstract
Verizon’s core network relies on routers that use expensive plug-in cards (PICs) to function. PIC failures can cause disruptions to FiOS or wireless service in the surrounding area. Maintaining an appropriate level of spare PICs is important to maintaining high service levels. Due to the high cost and volume of PICs used in Verizon's networks, it becomes expensive to hold excessive inventory onsite, without exponentially increasing working capital.
This project takes two approaches to aiding in inventory management: first, building predictive models for PICs failures in FiOS routers based on previously recorded failures; second, developing a holistic Central Office (CO, where telecommunications data is routed) prioritization system to determine where to place constrained inventory. While developing predictive models for PICs failures proved unsuccessful, the CO prioritization approach resulted in reductions in outage customer impact and traffic impact of more than 40% across all test cases.
MIT Department
Massachusetts Institute of Technology. Department of Mechanical Engineering
Sloan School of Management
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