Identifying inventory excess and service risk in medical devices : a simulation approach
Author(s)Rey, Maria (Maria de los Santos); Xu, Xiaofan
Massachusetts Institute of Technology. Supply Chain Management Program.
Omar Sherif Elwakil.
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Medical devices companies struggle to balance between inventory and service performance, as the products are non-interchangeable and inventory investment is expensive. To find the right level of inventory, we first used unsupervised clustering method to find demand pattern uncertainty for each product. Then, we developed a simulation-based approach to determine the required inventory to achieve a required service level guarantee. We further explored policy changes in the demand fulfillment process to identify how the company can effectively improve performance without increasing inventory level. After comparing different results, we concluded that reduction of replenishment lead time is the most effective measure. The methodology can be applied to a wide range of products and sectors.
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 81-82).
DepartmentMassachusetts Institute of Technology. Supply Chain Management Program.
Massachusetts Institute of Technology
Supply Chain Management Program.