Total supply chain cost model
Name
64560808-MIT.pdf
Description
Full printable version
Size
6.19 MB
Format
Adobe PDF
Checksum (MD5)
327c36c174b84c586b154c608476ca5e
Author(s)
Wu, Claudia
Advisor(s)
Stephen C. Graves and Abbott Weiss.
Date Issued
2005
Publisher
Massachusetts Institute of Technology
Abstract
Sourcing and outsourcing decisions have taken on increased importance within Teradyne to improve efficiency and competitiveness. This project delivered a conceptual framework and a software tool to analyze supply chain costs associated with a specified supply chain design. Determining total supply chain cost is a complex challenge. This work developed the concept of a hierarchical, inter-related, multi-level supply chain cost architecture. Within this architecture, supply chain costs can be expressed as a sum of only 5 supply chain cost factors (material, labor, logistics, inventory holding, and overhead costs). The reduction of a large number of potential cost factors eases communication about total supply chain costs within an organization. An interactive Excel VBA software was developed which allows the user to experimentally model changes to a specific supply chain design. The VBA program automatically recalculates the supply chain costs based on the changes made. The output of the program is a comparison of costs associated with different supply chain designs. In a case study, the total supply chain cost model was applied to evaluate different supply chain node locations in Southeast Asia for one of Teradyne's testers.
Description
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Manufacturing Program at MIT, 2005.
Includes bibliographical references (leaves 72-73).
Subjects
Sloan School of Management.
Electrical Engineering and Computer Science.
Leaders for Manufacturing Program.
MIT Department
Leaders for Manufacturing Program at MIT
Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science
Sloan School of Management
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