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Stephen C. Graves. Andritsos, Dimitrios Craig, Anthony Massachusetts Institute of Technology. Engineering Systems Division. Massachusetts Institute of Technology. Engineering Systems Division 2007-02-21T11:40:32Z 2007-02-21T11:40:32Z 2006 2006 http://hdl.handle.net/1721.1/36147 72823465 Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2006. Includes bibliographical references (leaf 59). In this thesis, an analysis of the existing order based fulfillment process for one product line of a specialty chemicals manufacturer is made and the potential benefits from the implementation of a vendor managed inventory (VMI) system are quantified. A single facility is considered and our focus is on the possible reductions in transportation effort. Initially, a set of criteria are defined for classifying which storage tanks will be served under the VMI system and which under the existing order based process. Subsequently, a cluster first-route second approach is implemented, where customer locations are first separated into clusters based on geographical proximity and routes are then designed for each of the clusters. A mathematical model is constructed that aids in the design of delivery routes that minimize the total number of delivery trips. Finally, the total transportation effort that would be required for replenishing the VMI and non-VMI tanks is estimated and a comparison is made with the current system. Key performance indicators are compared between the existing order based fulfillment process and the potential VMI implementation. Limitations of the proposed approach are discussed and directions for future research are highlighted. by Dimitrios Andritsos and Anthony Craig. M.Eng. in Logistics 59 leaves eng Massachusetts Institute of Technology 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. http://dspace.mit.edu/handle/1721.1/7582 Engineering Systems Division. Vendor managed inventory vs. order based fulfillment in a specialty chemical company Vendor managed inventory versus order based fulfillment in a specialty chemical company Thesis application/pdf false Publication unknown unknown <Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="6f4f0a7b-bbef-42c3-bef0-54c35e1dd381"> <Type xmlns="https://www.openaire.eu/cerif-profile/vocab/COAR_Publication_Types">http://purl.org/coar/resource_type/c_1843</Type> <Language>eng</Language> <Title>Vendor managed inventory vs. order based fulfillment in a specialty chemical company</Title> <Subtitle>Vendor managed inventory versus order based fulfillment in a specialty chemical company</Subtitle> <PublishedIn> <Publication> </Publication> </PublishedIn> <PublicationDate>2006</PublicationDate> <Authors> <Author> <DisplayName>Andritsos, Dimitrios</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> <Author> <DisplayName>Craig, Anthony</DisplayName> <Affiliation> <OrgUnit> </OrgUnit> </Affiliation> </Author> </Authors> <Editors> </Editors> <Publishers> <Publisher> <DisplayName>Massachusetts Institute of Technology</DisplayName> <OrgUnit /> </Publisher> </Publishers> <License>http://dspace.mit.edu/handle/1721.1/7582</License> <Keyword>Engineering Systems Division.</Keyword> <Abstract>In this thesis, an analysis of the existing order based fulfillment process for one product line of a specialty chemicals manufacturer is made and the potential benefits from the implementation of a vendor managed inventory (VMI) system are quantified. A single facility is considered and our focus is on the possible reductions in transportation effort. Initially, a set of criteria are defined for classifying which storage tanks will be served under the VMI system and which under the existing order based process. Subsequently, a cluster first-route second approach is implemented, where customer locations are first separated into clusters based on geographical proximity and routes are then designed for each of the clusters. A mathematical model is constructed that aids in the design of delivery routes that minimize the total number of delivery trips. Finally, the total transportation effort that would be required for replenishing the VMI and non-VMI tanks is estimated and a comparison is made with the current system. Key performance indicators are compared between the existing order based fulfillment process and the potential VMI implementation. Limitations of the proposed approach are discussed and directions for future research are highlighted.</Abstract> <Access xmlns="http://purl.org/coar/access_right" > </Access> </Publication>