Optimization of ship-pack in a two-echelon distribution system

Thesis (S.M.)--Massachusetts Institute of Technology, Computation for Design and Optimization Program, 2010.

Bibliographic Details
Main Author: Wen, Naijun
Other Authors: Stephen C. Graves.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2011
Subjects:
Online Access:http://hdl.handle.net/1721.1/61903
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author Wen, Naijun
author2 Stephen C. Graves.
author_facet Stephen C. Graves.
Wen, Naijun
author_sort Wen, Naijun
collection MIT
description Thesis (S.M.)--Massachusetts Institute of Technology, Computation for Design and Optimization Program, 2010.
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spelling mit-1721.1/619032019-04-12T20:22:10Z Optimization of ship-pack in a two-echelon distribution system Wen, Naijun Stephen C. Graves. Massachusetts Institute of Technology. Computation for Design and Optimization Program. Massachusetts Institute of Technology. Computation for Design and Optimization Program. Computation for Design and Optimization Program. Thesis (S.M.)--Massachusetts Institute of Technology, Computation for Design and Optimization Program, 2010. Cataloged from PDF version of thesis. Includes bibliographical references (p. 61-62). The traditional Economic Order Quantity (EOQ) model ignores the physical limitations of distribution practices. Very often distribution centers (DC) have to deliver merchandise in manufacturer-specified packages, which can impose restrictions on the application of the economic order quantity. These manufacturer-specified packages, or ship-packs, include cases (e.g., cartons containing 24 or 48 units), inners (packages of 6 or 8 units) and eaches (individual units). For each Stock Keeping Unit (SKU), a retailer decides which of these ship-pack options to use when replenishing its retail stores. Working with a major US retailer, we have developed a cost model to help determine the optimum warehouse ship-pack. Besides recommending the most economical ship-pack, the model is also capable of identifying candidates for warehouse dual-slotting, i.e., two picking modules for the same SKU that carry two different pack sizes. We find that SKUs whose sales volumes vary greatly over time will benefit more from dual-slotting. Finally, we extend our model to investigate the ideal case configuration for a particular SKU, that is, the ideal size for an inner package. by Naijun Wen. S.M. 2011-03-24T20:24:10Z 2011-03-24T20:24:10Z 2010 2010 Thesis http://hdl.handle.net/1721.1/61903 706826069 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 62 p. application/pdf Massachusetts Institute of Technology
spellingShingle Computation for Design and Optimization Program.
Wen, Naijun
Optimization of ship-pack in a two-echelon distribution system
title Optimization of ship-pack in a two-echelon distribution system
title_full Optimization of ship-pack in a two-echelon distribution system
title_fullStr Optimization of ship-pack in a two-echelon distribution system
title_full_unstemmed Optimization of ship-pack in a two-echelon distribution system
title_short Optimization of ship-pack in a two-echelon distribution system
title_sort optimization of ship pack in a two echelon distribution system
topic Computation for Design and Optimization Program.
url http://hdl.handle.net/1721.1/61903
work_keys_str_mv AT wennaijun optimizationofshippackinatwoechelondistributionsystem