Multi-echelon inventory modeling and supply redesign
Name
1014181471-MIT.pdf
Description
Full printable version
Size
6.15 MB
Format
Adobe PDF
Checksum (MD5)
00d2cd0285f978c24d7ee85ae054c747
Author(s)
Scott, Patrick (Patrick James)
Xu, Boxi
Advisor(s)
Josué C. Velázquez-Martínez
Date Issued
2017
Publisher
Massachusetts Institute of Technology
Abstract
Many businesses struggle to optimize the flow of inventory and finished goods through existing plants and facilities. The integration of inventory costs, organizational processes, and changing business dynamics make it difficult to determine the optimal flow. This thesis examines the flow of raw materials and finished goods through the supply chain of a multi-national oilfield services company. We study a centralized inventory approach, assessed through heuristics, against the existing decentralized approach. Sensitivity analysis with regard to service level, and mode of transport strengthened the analysis. We show that demand aggregation and lead time are important factors in determining the upper echelon for a company's internal distribution model. Potential safety stock reduction is 2%, which is mainly due to the improved coordination for materials flowing to the final echelon in the supply chain. However, pipeline inventory increases by 12% as a result of longer lead times.
Description
Thesis: M. Eng. in Supply Chain Management, Massachusetts Institute of Technology, Supply Chain Management Program, 2017.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 46-49).
Subjects
Supply Chain Management Program.
MIT Department
Massachusetts Institute of Technology. Supply Chain Management Program
Terms of Use
MIT theses may be protected by copyright. Please reuse MIT thesis content according to the MIT Libraries Permissions Policy, which is available through the URL provided.
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