Stock level optimization at the distribution center through improved supply management practices
Author(s)Vega González, Myraida Angélica
Leaders for Manufacturing Program.
David Hardt and Jeremie Gallien.
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This thesis focuses on an inventory and supply management improvement project at Inditex, SA Corporation. Inditex has experienced a higher percentage increase in inventory than in sales over the past few years. As a fast-fashion power house and the largest fashion distributor in the world since August 2008, this trend goes directly against its corporate strategy and competitive advantage. The internship project addresses this trend by focusing on the deterioration in the company's supply management practices. The project developed an optimization model which minimizes total supply chain cost in order to define order points and quantities for a given reference whose demand and variability were also modeled. As a result of these efforts, theoretical inventory turns may be decreased, on average, by 19%. While these preliminary results are promising, organizational barriers to adoption must also be carefully addressed throughout the project's implementation period. To minimize these risks, a phased implementation approach is recommended which addresses both the technical and organizational hurdles and must be overcome before successful adoption of the tool across the company.
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2009.Includes bibliographical references (p. 84-85).
DepartmentSloan School of Management.; Massachusetts Institute of Technology. Dept. of Mechanical Engineering.; Leaders for Manufacturing Program.; Massachusetts Institute of Technology. Department of Mechanical Engineering; Sloan School of Management
Massachusetts Institute of Technology
Sloan School of Management., Mechanical Engineering., Leaders for Manufacturing Program.