2026-09-19T12:36:27Zhttps://dspace.mit.edu/server/oai/requestoai:dspace.mit.edu:1721.1/1541802024-04-18T03:21:22Zcom_1721.1_7582com_1721.1_7581col_1721.1_131023
Welsch, Roy E.
Wu, Cathy
Teno, Jason
Sloan School of Management
Massachusetts Institute of Technology. Department of Civil and Environmental Engineering
2024-04-17T21:09:24Z
2024-04-17T21:09:24Z
2023-06
2023-07-14T20:00:27.924Z
https://hdl.handle.net/1721.1/154180
Athletic apparel companies outsource apparel manufacturing to many factories that pack in varied sizes and quantities. Packaging is a critical, early step in retailers’ supply chains. Pack quantities impact downstream supply chain costs. Optimizing the relationship between pack quantities and downstream costs allows retailers to reduce unnecessary repackaging within their local distribution centers. This research created a discrete optimization model aimed to minimize distribution center costs as a function of pack sizes. As sales orders trend lower due to an increase in e-commerce sales, the optimization model suggested decreasing pack sizes to accommodate these trends and decrease the variation in pack sizes across product classifications. Immediate implementation would result in a 13.2% reduction in repackaging costs. After implementation, communication with customers to match sales orders to pack sizes would result in a 39.2% reduction in repackaging costs.
S.M.
M.B.A.
Massachusetts Institute of Technology
In Copyright - Educational Use Permitted
Copyright retained by author(s)
https://rightsstatements.org/page/InC-EDU/1.0/
Optimizing Apparel Pack Sizes Across Retailer’s North America Network
Thesis
application/pdf
Master
Master of Science in Civil and Environmental Engineering
Master of Business Administration
Publication
unknown
unknown
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<Abstract>Athletic apparel companies outsource apparel manufacturing to many factories that pack in varied sizes and quantities. Packaging is a critical, early step in retailers’ supply chains. Pack quantities impact downstream supply chain costs. Optimizing the relationship between pack quantities and downstream costs allows retailers to reduce unnecessary repackaging within their local distribution centers. This research created a discrete optimization model aimed to minimize distribution center costs as a function of pack sizes. As sales orders trend lower due to an increase in e-commerce sales, the optimization model suggested decreasing pack sizes to accommodate these trends and decrease the variation in pack sizes across product classifications. Immediate implementation would result in a 13.2% reduction in repackaging costs. After implementation, communication with customers to match sales orders to pack sizes would result in a 39.2% reduction in repackaging costs.</Abstract>
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