2026-09-25T08:48:29Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/1075232026-06-06T01:03:21Zcom_1721.1_7582com_1721.1_7581col_1721.1_131023
Fredrik Eng Larsson.
Chandra, Vikash, M. Eng. Massachusetts Institute of Technology
Tulley, Michael
Massachusetts Institute of Technology. Engineering Systems Division.
Massachusetts Institute of Technology. Supply Chain Management Program
2017-03-20T19:38:17Z
2017-03-20T19:38:17Z
2016
http://hdl.handle.net/1721.1/107523
962918499
Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016.
"June 2016." Cataloged from PDF version of thesis.
Includes bibliographical references (pages 63-64).
What is the appropriate raw material inventory strategy for a make-to-order manufacturing company? As companies grow in size and the business environment changes over time, many companies adapt their operating policies to remain competitive. However, some policies, such as raw material inventory policies, are left untouched as "legacies" of the company's past due to lower priorities or lack of adequate data. These raw material inventory policies are of particular importance to manufacturing firms, especially those that often operate at maximum capacity or have seasonality in demand. This research proposes a raw material inventory policy evaluation tool that allows a company to understand how certain key performance indicators are affected by various changes in its inventory policy and helps the company devise a strategy. This evaluation tool can then guide the company towards a better inventory policy in the absence of cost information and shows the results in terms of number of events. The company can then adjust various replenishment policies depending on the product's demand characteristics. In addition, the research demonstrates that inventory policy changes can be used to partially overcome supplier service level declines and demand variability.
by Vikash Chandra and Michael Tully.
M.Eng. in Logistics
64 pages
eng
Massachusetts Institute of Technology
MIT 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.
http://dspace.mit.edu/handle/1721.1/7582
Supply Chain Management Program.
Engineering Systems Division.
Raw material inventory strategy for make-to-order manufacturing
Thesis
application/pdf
Publication
unknown
unknown
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<Abstract>What is the appropriate raw material inventory strategy for a make-to-order manufacturing company? As companies grow in size and the business environment changes over time, many companies adapt their operating policies to remain competitive. However, some policies, such as raw material inventory policies, are left untouched as "legacies" of the company's past due to lower priorities or lack of adequate data. These raw material inventory policies are of particular importance to manufacturing firms, especially those that often operate at maximum capacity or have seasonality in demand. This research proposes a raw material inventory policy evaluation tool that allows a company to understand how certain key performance indicators are affected by various changes in its inventory policy and helps the company devise a strategy. This evaluation tool can then guide the company towards a better inventory policy in the absence of cost information and shows the results in terms of number of events. The company can then adjust various replenishment policies depending on the product's demand characteristics. In addition, the research demonstrates that inventory policy changes can be used to partially overcome supplier service level declines and demand variability.</Abstract>
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