Inventory positioning for a multi-echelon distribution network

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009.

Bibliographic Details
Main Authors: Avari, Deepak, Dayal, Naman
Other Authors: Amanda Schmitt.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2010
Subjects:
Online Access:http://hdl.handle.net/1721.1/55338
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author Avari, Deepak
Dayal, Naman
author2 Amanda Schmitt.
author_facet Amanda Schmitt.
Avari, Deepak
Dayal, Naman
author_sort Avari, Deepak
collection MIT
description Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009.
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spelling mit-1721.1/553382019-04-10T08:42:36Z Inventory positioning for a multi-echelon distribution network Avari, Deepak Dayal, Naman Amanda Schmitt. Massachusetts Institute of Technology. Engineering Systems Division. Massachusetts Institute of Technology. Engineering Systems Division. Engineering Systems Division. Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. Includes bibliographical references (leaf 60). This thesis presents a framework for deciding which products to centralize in a regional distribution center and which products to store decentralized close to the customer sites, for each facility in a multi-echelon distribution network. Our research specifically focuses on developing an optimization model to determine the inventory positioning strategy that minimizes total costs. The model considers both inbound and outbound transportation costs along with inventory holding costs at all facilities in the network. The total cost and responsiveness of the optimal solution are compared with the baseline network, in which inventory is completely decentralized. Our analysis is performed using several products that have diverse characteristics, in terms of demand patterns, lead-times, product costs, service-level requirements, transportation modes, and supplier locations. A sensitivity analysis is performed to study how a variance in these parameters affects the optimal solution. The research suggests that for high volume commodity items the benefits of centralization are highly dependent upon the degree of lane consolidation. However, for low volume specialty items, centralization can provide immediate benefits with no change to the existing transportation network. by Deepak Avari and Naman Dayal. M.Eng.in Logistics 2010-05-27T19:48:23Z 2010-05-27T19:48:23Z 2009 2009 Thesis http://hdl.handle.net/1721.1/55338 497110585 eng 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 75 leaves application/pdf Massachusetts Institute of Technology
spellingShingle Engineering Systems Division.
Avari, Deepak
Dayal, Naman
Inventory positioning for a multi-echelon distribution network
title Inventory positioning for a multi-echelon distribution network
title_full Inventory positioning for a multi-echelon distribution network
title_fullStr Inventory positioning for a multi-echelon distribution network
title_full_unstemmed Inventory positioning for a multi-echelon distribution network
title_short Inventory positioning for a multi-echelon distribution network
title_sort inventory positioning for a multi echelon distribution network
topic Engineering Systems Division.
url http://hdl.handle.net/1721.1/55338
work_keys_str_mv AT avarideepak inventorypositioningforamultiechelondistributionnetwork
AT dayalnaman inventorypositioningforamultiechelondistributionnetwork