Impact of product complexity on inventory levels
Name
72809825-MIT.pdf
Description
Full printable version
Size
2.61 MB
Format
Adobe PDF
Checksum (MD5)
864eff92542d159cebfa54199358d5c8
Author(s)
See, Ying-Lai
Namkoong, Jin
Advisor(s)
Chris Caplice.
Date Issued
2006
Publisher
Massachusetts Institute of Technology
Abstract
In this thesis we consider a manufacturing and distribution supply chain of a roll-based product whose width comes in 1-cm increments. We formulate a computer model subject to stochastic, inelastic demand to determine the relationship between width interval and finished goods inventory levels. Assuming that the supply chain operates with the same set of policies regardless of the width interval value, we illustrate that the value of risk pooling diminishes as the interval widens. Due to the presence of a counteracting effect, we also demonstrate that increasing the width interval does not always reduce the amount of inventory requirements. Lastly, we show that the supply chain can operate with lower inventory levels without compromising the service level by pushing the inventory down the chain.
Description
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2006.
Includes bibliographical references (leaves 62-63).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
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
