An approach to sourcing optimization at a high volume soft drink manufacturer
Name
85812019-MIT.pdf
Description
Full printable version
Size
6.5 MB
Format
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Checksum (MD5)
206ec77ab6c142faf08591975b70bd5c
Author(s)
Khattar, Sandeep
Advisor(s)
David Simchi-Levi and David E. Hardt.
Date Issued
2006
Publisher
Massachusetts Institute of Technology
Abstract
The Pepsi Bottling Group (PBG) is the world's largest manufacturer, seller, and distributor of carbonated and non-carbonated Pepsi-Cola beverages. The supply chain network in the United States consists of 52 plants, over 360 warehouses, and an ever growing portfolio of SKU's. Currently, there is no robust method for determining the sourcing strategy - in which plant(s) to produce each product. The objective of this thesis is to develop an approach that allows PBG to determine where products should be produced to reduce overall supply chain costs while meeting all relevant business constraints. An approach to sourcing utilizing an optimization algorithm is presented, along with a suggested implementation plan. This approach has demonstrated the potential to generate significant cost savings throughout the supply chain. The research for this thesis was conducted during an internship with the Pepsi Bottling Group, in affiliation with the Leaders for Manufacturing program at the Massachusetts Institute of Technology.
Description
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2006.
Includes bibliographical references (p. 60).
Subjects
Sloan School of Management.
Mechanical Engineering.
Leaders for Manufacturing Program.
MIT Department
Leaders for Manufacturing Program at MIT
Massachusetts Institute of Technology. Department of Mechanical Engineering
Sloan School of Management
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