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Inventory reduction : applying a pull ordering system to a distribution business

Author(s)
Chesborough, Amber J. (Amber June), 1977-
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Other Contributors
Leaders for Manufacturing Program.
Advisor
Charles Fine and Daniel Whitney.
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. http://dspace.mit.edu/handle/1721.1/7582
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Abstract
This thesis is a description of an internship project at an aerospace parts distribution company. The goal of the project was to reduce inventory by applying a pull ordering system to the distributor's value chain. The thesis provides background on the theory of "push" vs. "pull" systems, and a discussion of how pull systems can reduce inventory while maintaining or improving service level. Typically, pull systems are applied to situations of relatively frequent and constant demand. Using a model developed for the internship company, we demonstrate that a two-bin kanban refill system can be applied to reduce inventory by 50-60%, even given a situation of volatile demand. We describe the pilot project (currently in progress) intended to prove out the kanban system's performance, including the team composition, implementation plan, and perceived barriers to implementation. In conclusion, we reflect on the project's results and present suggestions for future improvement.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; and, (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; in conjunction with the Leaders for Manufacturing Program at MIT, 2004.
 
Includes bibliographical references (leaf 32).
 
Date issued
2004
URI
http://hdl.handle.net/1721.1/34792
Department
Massachusetts Institute of Technology. Dept. of Mechanical Engineering.; Sloan School of Management.; Leaders for Manufacturing Program.
Publisher
Massachusetts Institute of Technology
Keywords
Mechanical Engineering., Sloan School of Management., Leaders for Manufacturing Program.

Collections
  • Management - Master's degree
  • Management - Master's degree
  • Mechanical Engineering - Master's degree
  • Mechanical Engineering - Master's degree

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