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dc.contributor.advisorJosué C. Velázquez-Martínez.en_US
dc.contributor.authorChua, Ian (Ian Hong Leong)en_US
dc.contributor.authorHeyward, Thomasen_US
dc.contributor.otherMassachusetts Institute of Technology. Supply Chain Management Program.en_US
dc.date.accessioned2017-12-20T18:15:33Z
dc.date.available2017-12-20T18:15:33Z
dc.date.copyright2017en_US
dc.date.issued2017en_US
dc.identifier.urihttp://hdl.handle.net/1721.1/112871
dc.descriptionThesis: M. Eng. in Supply Chain Management, Massachusetts Institute of Technology, Supply Chain Management Program, 2017.en_US
dc.descriptionCataloged from PDF version of thesis.en_US
dc.descriptionIncludes bibliographical references (pages 47-51).en_US
dc.description.abstractIn manufacturing companies, production strategies prioritize maximizing line efficiency which favors large lot sizes and few setups. On the other hand, logistics strategies prioritize minimizing inventory costs which favors smaller lot sizes and more setups. This thesis provides a new mixed integer linear model formulation that optimizes lot sizes such that both manufacturing efficiency and inventory costs are considered simultaneously. The model solves a multi-machine capacitated lot sizing problem with novel extensions for multi-echelon inventory, transfer costs between inventory echelons, and a multi-echelon product setup hierarchy. The model includes extensions for setuptimes and multiple non-identical machine capabilities. The multi-echelon inventory extension is applicable to firms that contract a third party logistics provider's warehouse to handle seasonal inventory. In this situation, the firm has two inventory holding cost structures and desires to optimize usage of the contracted warehouse. The multi-echelon setup extension is applicable to firms that manufacture products with similar characteristics such that they share a common machine setup cost at a category or aggregated level and a unique setup cost at an item or disaggregated level. When applied to benchmarking manufacturing data, the model demonstrates improved production plans that reduce inventory and setup costs by 30% in some scenarios. This thesis emphasizes how integrating production and logistics strategies can offer significant improvement to any firm's supply chain. In particular, firms with a multi-echelon inventory or setup cost structure can benefit from a model that accounts for these important cost drivers in planning its production.en_US
dc.description.statementofresponsibilityby Ian Chua and Thomas Heyward.en_US
dc.format.extent57 pagesen_US
dc.language.isoengen_US
dc.publisherMassachusetts Institute of Technologyen_US
dc.rightsMIT 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.en_US
dc.rights.urihttp://dspace.mit.edu/handle/1721.1/7582en_US
dc.subjectSupply Chain Management Program.en_US
dc.titleHow to integrate your production and logistics strategy : a new CLSP formulation for a CPG supply chainen_US
dc.title.alternativeNew Capacitated Lot Sizing Model formulation for a consumer packaged goods supply chainen_US
dc.typeThesisen_US
dc.description.degreeM. Eng. in Supply Chain Managementen_US
dc.contributor.departmentMassachusetts Institute of Technology. Supply Chain Management Program.en_US
dc.identifier.oclc1014338139en_US


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