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Evaluating demand planning strategy in the retail channel

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dc.contributor.advisor David Simchi-Levi and Roy Welsch. en_US Zehavi, Limor (Limor Hadas) en_US
dc.contributor.other Leaders for Global Operations Program. en_US 2012-09-27T15:29:28Z 2012-09-27T15:29:28Z 2012 en_US 2012 en_US
dc.description Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2012. en_US
dc.description Cataloged from PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 77-78). en_US
dc.description.abstract In 2007 Dell began selling through the retail channel. Five years later, the retail channel is still in the early stages relative to competitors and is growing rapidly. Short product lifecycles, long lead times and a high mix of configurations create a complex supply chain. Dell had decided to introduce a Build to Plan fulfillment strategy. Dell has been known for its direct consumer strategy and the retail channel adds an additional stage in the supply chain between Dell and the end consumer. This change impacts the visibility of true demand, resulting in the bullwhip effect. Better collaborative processes such as S&OP and CPFR can improve the channel forecast accuracy, inventory levels, on time delivery, and sales revenue. The personal computer industry has become commoditized; promotions and price have a high impact on the end consumer's purchase decision. Long lead times and high price fluctuation increase uncertainty. Forecasting at a SKU level is challenging and inaccurate. An aggregated approach can reduce the variability and postpone the customization. Forecast accuracy is a key metric that can be used to improve the supply chain. To improve that metric, the appropriate forecast must be tracked and compared to the actual sales. A significant portion of any new planning process will need to account for updated software tools. These tools can help Dell's demand planners facilitate weekly conversations with retailers and ensure more accurate tracking of appropriate demand signals for forecasting. The current product portfolio that allows high flexibility to retailers does not fit the low margins of the product. Demand segmentation can identify which SKU have high volatility and offer a different supply chain strategy for those with low volumes, or spotlight high costs in offering those SKU. en_US
dc.description.statementofresponsibility by Limor Zehavi. en_US
dc.format.extent 79 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights 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. en_US
dc.rights.uri en_US
dc.subject Sloan School of Management. en_US
dc.subject Engineering Systems Division. en_US
dc.subject Leaders for Global Operations Program. en_US
dc.title Evaluating demand planning strategy in the retail channel en_US
dc.type Thesis en_US S.M. en_US M.B.A. en_US
dc.contributor.department Sloan School of Management. en_US
dc.contributor.department Massachusetts Institute of Technology. Engineering Systems Division. en_US
dc.contributor.department Leaders for Global Operations Program. en_US
dc.identifier.oclc 810135786 en_US

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