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David Simchi-Levi, and Don Rosenfield. Katcoff, Elizabeth Leaders for Global Operations Program. Leaders for Global Operations Program at MIT Massachusetts Institute of Technology. Engineering Systems Division Sloan School of Management 2013-03-01T15:09:23Z 2013-03-01T15:09:23Z 2011 2012 http://hdl.handle.net/1721.1/77476 827230697 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, September 2012. Cataloged from PDF version of thesis. Includes bibliographical references (p. 78-79). With rising fuel costs and increasing rates among specialized shipping carriers, cost mitigation in outbound distribution is increasingly important for automobile manufacturers. Many manufacturers have turned to specialized, licensed supply chain software to optimize their distribution network to determine the appropriate path for each product from factory to dealer. While these software programs include robust algorithms for optimizing the network, they are only as strong as the user inputs. To gain maximum value from supply chain software, automotive companies must fully understand the structure of their networks, their costs, and their constraints to ensure that the model is all-inclusive. This paper attempts to understand the distribution model used at Nissan North America by formulating the model algebraically with a linear program. With insights to the model design, we uncover several opportunities for improvement. Specifically, we create a more inclusive objective function by ensuring that all relevant costs are captured so that the model optimizes the "total landed cost." We also highlight several opportunities for increased model flexibility in areas where the model is over constrained -- both in its mathematical constraints and in its structural design. With increased flexibility, supply chain software has more alternative paths in the network to choose from, increasing the opportunity for the program to find a lower cost solution. Lastly, we stress the importance of using the software for scenario analysis to create a more responsive supply chain. When implemented, the improvements presented in this paper yield a cost savings of over $10 million. The principles of the model improvements in this thesis can be applied to distribution optimization in any industry. by Elizabeth Katcoff. S.M. M.B.A. 79 p. 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 Sloan School of Management. Engineering Systems Division. Leaders for Global Operations Program. From plant to dealer : improving route optimization for outbound vehicle distribution at an automobile manufacturer Improving route optimization for outbound vehicle distribution at an automobile manufacturer Thesis application/pdf false Publication unknown unknown <Publication xmlns="https://www.openaire.eu/cerif-profile/1.1/" id="65851b1d-4f60-46fd-9e92-90bd4b2e0f56"> <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>From plant to dealer : improving route optimization for outbound vehicle distribution at an automobile manufacturer</Title> <Subtitle>Improving route optimization for outbound vehicle distribution at an automobile manufacturer</Subtitle> <PublishedIn> <Publication> </Publication> </PublishedIn> <PublicationDate>2012</PublicationDate> <Authors> <Author> <DisplayName>Katcoff, Elizabeth</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>Sloan School of Management.</Keyword> <Keyword>Engineering Systems Division.</Keyword> <Keyword>Leaders for Global Operations Program.</Keyword> <Abstract>With rising fuel costs and increasing rates among specialized shipping carriers, cost mitigation in outbound distribution is increasingly important for automobile manufacturers. Many manufacturers have turned to specialized, licensed supply chain software to optimize their distribution network to determine the appropriate path for each product from factory to dealer. While these software programs include robust algorithms for optimizing the network, they are only as strong as the user inputs. To gain maximum value from supply chain software, automotive companies must fully understand the structure of their networks, their costs, and their constraints to ensure that the model is all-inclusive. This paper attempts to understand the distribution model used at Nissan North America by formulating the model algebraically with a linear program. With insights to the model design, we uncover several opportunities for improvement. Specifically, we create a more inclusive objective function by ensuring that all relevant costs are captured so that the model optimizes the &quot;total landed cost.&quot; We also highlight several opportunities for increased model flexibility in areas where the model is over constrained -- both in its mathematical constraints and in its structural design. With increased flexibility, supply chain software has more alternative paths in the network to choose from, increasing the opportunity for the program to find a lower cost solution. Lastly, we stress the importance of using the software for scenario analysis to create a more responsive supply chain. When implemented, the improvements presented in this paper yield a cost savings of over $10 million. The principles of the model improvements in this thesis can be applied to distribution optimization in any industry.</Abstract> <Access xmlns="http://purl.org/coar/access_right" > </Access> </Publication>