Product availability improvement for analytical column supply chain : inventory optimization and lot sizing
Thesis: M. Eng. in Manufacturing, Massachusetts Institute of Technology, Department of Mechanical Engineering, 2016.
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2017
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| Online Access: | http://hdl.handle.net/1721.1/107545 |
| _version_ | 1826205920305086464 |
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| author | Lee, Nelson, M. Eng. Massachusetts Institute of Technology |
| author2 | Stephen C Graves. |
| author_facet | Stephen C Graves. Lee, Nelson, M. Eng. Massachusetts Institute of Technology |
| author_sort | Lee, Nelson, M. Eng. Massachusetts Institute of Technology |
| collection | MIT |
| description | Thesis: M. Eng. in Manufacturing, Massachusetts Institute of Technology, Department of Mechanical Engineering, 2016. |
| first_indexed | 2024-09-23T13:21:08Z |
| format | Thesis |
| id | mit-1721.1/107545 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T13:21:08Z |
| publishDate | 2017 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/1075452019-04-10T12:45:57Z Product availability improvement for analytical column supply chain : inventory optimization and lot sizing Lee, Nelson, M. Eng. Massachusetts Institute of Technology Stephen C Graves. Massachusetts Institute of Technology. Department of Mechanical Engineering. Massachusetts Institute of Technology. Department of Mechanical Engineering. Mechanical Engineering. Thesis: M. Eng. in Manufacturing, Massachusetts Institute of Technology, Department of Mechanical Engineering, 2016. "September 2016." Cataloged from student-submitted PDF version of thesis. Includes bibliographical references (page 75). This thesis demonstrates the potential of a structured safety stock policy, and an improved lot sizing production policy on the inventory level and service level. The thesis focuses on incorporating demand variability into the factors of determining the safety stock level, and establishing a structured ordering and validation process. The thesis also incorporates setup cost and product nature into creating a new production policy that aims to significantly increase the service level for products in the Build to Order category. A detailed study and interview of the Waters Column Supply Chain are performed at the start of the project leading to a focus on service level and the objective of cost reduction. It has been determined that many challenges in the supply chain have arisen due to complexity and over execution of company aims of high product availability for Super A products. The thesis addresses the first challenge with a safety stock policy in which the safety stock is a function of the safety factor, lead time, and weekly standard deviation of the demand. This policy is later validated with a simulation based upon demand data and ordering pattern. For the new production policy, the author suggests an increase in production for Build to Order, while applying the Economic Order Quantity model. To validate the new policy and its effect, a simulation using the historical demand data is used to simulate the new cost and service level. From the simulation the author found a 99.5% service level and a 17% reduction in safety stock. At the same time the author introduces a new safety stock policy that is expected to mediate some of the challenges observed from the interviews. The simulation of the new production policy predicts a 17.3% increase in service level and a $6,606 reduction in cost. by Nelson Lee. M. Eng. in Manufacturing 2017-03-20T19:39:21Z 2017-03-20T19:39:21Z 2016 Thesis http://hdl.handle.net/1721.1/107545 974498194 eng MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission. http://dspace.mit.edu/handle/1721.1/7582 107 pages application/pdf Massachusetts Institute of Technology |
| spellingShingle | Mechanical Engineering. Lee, Nelson, M. Eng. Massachusetts Institute of Technology Product availability improvement for analytical column supply chain : inventory optimization and lot sizing |
| title | Product availability improvement for analytical column supply chain : inventory optimization and lot sizing |
| title_full | Product availability improvement for analytical column supply chain : inventory optimization and lot sizing |
| title_fullStr | Product availability improvement for analytical column supply chain : inventory optimization and lot sizing |
| title_full_unstemmed | Product availability improvement for analytical column supply chain : inventory optimization and lot sizing |
| title_short | Product availability improvement for analytical column supply chain : inventory optimization and lot sizing |
| title_sort | product availability improvement for analytical column supply chain inventory optimization and lot sizing |
| topic | Mechanical Engineering. |
| url | http://hdl.handle.net/1721.1/107545 |
| work_keys_str_mv | AT leenelsonmengmassachusettsinstituteoftechnology productavailabilityimprovementforanalyticalcolumnsupplychaininventoryoptimizationandlotsizing |