Multi-echelon inventory management for a fresh produce retail supply chain
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2010.
| Main Authors: | , |
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| Other Authors: | |
| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2011
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| Online Access: | http://hdl.handle.net/1721.1/61188 |
| _version_ | 1826191895213113344 |
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| author | Suryawanshi, Yogeshwar D. (Yogeshwar Dattatraya) Hsien, Thomas |
| author2 | Amanda Schmitt. |
| author_facet | Amanda Schmitt. Suryawanshi, Yogeshwar D. (Yogeshwar Dattatraya) Hsien, Thomas |
| author_sort | Suryawanshi, Yogeshwar D. (Yogeshwar Dattatraya) |
| collection | MIT |
| description | Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2010. |
| first_indexed | 2024-09-23T09:02:58Z |
| format | Thesis |
| id | mit-1721.1/61188 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T09:02:58Z |
| publishDate | 2011 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/611882019-04-10T20:25:19Z Multi-echelon inventory management for a fresh produce retail supply chain Suryawanshi, Yogeshwar D. (Yogeshwar Dattatraya) Hsien, Thomas 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, 2010. Cataloged from PDF version of thesis. Includes bibliographical references (p. 83-84). Perishability presents a challenging problem in inventory management for the fresh produce industry since it can lead to higher inventory costs and lower service levels. If a supply chain has multiple echelons, that further complicates the issue since companies have an added risk of not having the right amount of product at the right location at the right time. We conduct our research on Chiquita's Fresh Express supply chain. We analyze the impact of perishability on total relevant costs. Our research focuses on determining the optimal inventory policy for the system considering inventory holding costs, shrinkage costs, lost sales costs, forecast accuracy and service levels. We test the sensitivity of the system with respect to forecast errors and the transportation lead time. We developed a discrete-event simulation model using Arena software to conduct the research. Our research demonstrates that by lowering the current target on-hand inventory levels at the distribution center and retail stores, inventory holding costs and shrinkage costs are reduced significantly. Under the optimal inventory policy, the system can save 31% in costs, improve the item fill rate at the distribution center, reduce the total shrinkage volume, and maintain high service levels of more than 95% at the retail stores. Our sensitivity analysis shows that the system is very sensitive to the forecast errors. Additionally, we recommend keeping the transportation lead time as low as possible to maximize the products' lifetime at the retail stores. Reducing the forecast errors or the transportation lead time would reduce the total relevant cost of the system while improving the item fill rates across the supply chain. by Yogeshwar D. Suryawanshi and Thomas Hsien. M.Eng.in Logistics 2011-02-23T14:26:34Z 2011-02-23T14:26:34Z 2010 2010 Thesis http://hdl.handle.net/1721.1/61188 700942692 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 110 p. application/pdf Massachusetts Institute of Technology |
| spellingShingle | Engineering Systems Division. Suryawanshi, Yogeshwar D. (Yogeshwar Dattatraya) Hsien, Thomas Multi-echelon inventory management for a fresh produce retail supply chain |
| title | Multi-echelon inventory management for a fresh produce retail supply chain |
| title_full | Multi-echelon inventory management for a fresh produce retail supply chain |
| title_fullStr | Multi-echelon inventory management for a fresh produce retail supply chain |
| title_full_unstemmed | Multi-echelon inventory management for a fresh produce retail supply chain |
| title_short | Multi-echelon inventory management for a fresh produce retail supply chain |
| title_sort | multi echelon inventory management for a fresh produce retail supply chain |
| topic | Engineering Systems Division. |
| url | http://hdl.handle.net/1721.1/61188 |
| work_keys_str_mv | AT suryawanshiyogeshwardyogeshwardattatraya multiecheloninventorymanagementforafreshproduceretailsupplychain AT hsienthomas multiecheloninventorymanagementforafreshproduceretailsupplychain |