Two papers in supply chain design : supply chain configuration and part selection in multigeneration products

Thesis (Ph.D.)--Massachusetts Institute of Technology, Sloan School of Management, 1999.

Bibliographic Details
Main Author: Willems, Sean Peter
Other Authors: Stephen C. Graves.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2005
Subjects:
Online Access:http://hdl.handle.net/1721.1/9682
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author Willems, Sean Peter
author2 Stephen C. Graves.
author_facet Stephen C. Graves.
Willems, Sean Peter
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description Thesis (Ph.D.)--Massachusetts Institute of Technology, Sloan School of Management, 1999.
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spelling mit-1721.1/96822019-04-11T00:12:27Z Two papers in supply chain design : supply chain configuration and part selection in multigeneration products Optimal part selection strategies for multigeneration products Willems, Sean Peter Stephen C. Graves. Sloan School of Management Sloan School of Management Thesis (Ph.D.)--Massachusetts Institute of Technology, Sloan School of Management, 1999. Includes bibliographical references (p. 132-133). Increasing competitive pressures are forcing companies to increase their rates of innovation. The increasing rate of innovation shortens each product's duration in the market, thereby compressing each product's life cycle. Without proper management, increasing product turnover will increase design and manufacturing costs. More frequent product development cycles require additional product development resources. Shorter production runs inhibit a company's ability to achieve manufacturing cost reductions by exploiting the learning curve and scale economies. Unless companies can efficiently manage multiple generations of the product, there is a substantial risk that costs will spiral out of control. Focusing on supply chain design is one way companies can combat the problems caused by increased competition and shorter product life cycles. Supply chain design attempts to create the appropriate supply chain for the company's operating environment. This dissertation addresses two problems that are relevant to supply chain design. The first problem addresses how to configure a new product's supply chain. In this problem, the product's design has already been fixed. The central question is determining what parts and processes to select. For example, various vendors can supply a certain raw material, multiple machines or processes can manufacture the assembly, and multiple shipping options can deliver the completed product to the final customer. Each of these different options is differentiated by its production time and direct cost added. Given these various choices along the supply chain, the problem is to select the options that minimize the total supply chain cost. The second problem addresses part selection for multigeneration products. When product life cycles are short, the company could opt to over engineer certain components or subsystems in the current generation. This would inquire the current period's costs but allow the company to forgo a development cycle in the next period and gain cost efficiencies by exploiting the higher volume from two generations of demand. This research considers development costs, manufacturing costs and part functionality requirements in order to determine the optimal upgrade path for components across multiple product generations. by Sean Peter Willems. Ph.D. 2005-08-19T19:25:59Z 2005-08-19T19:25:59Z 1999 1999 Thesis http://hdl.handle.net/1721.1/9682 42587929 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 133 p. 7462739 bytes 7462501 bytes application/pdf application/pdf application/pdf Massachusetts Institute of Technology
spellingShingle Sloan School of Management
Willems, Sean Peter
Two papers in supply chain design : supply chain configuration and part selection in multigeneration products
title Two papers in supply chain design : supply chain configuration and part selection in multigeneration products
title_full Two papers in supply chain design : supply chain configuration and part selection in multigeneration products
title_fullStr Two papers in supply chain design : supply chain configuration and part selection in multigeneration products
title_full_unstemmed Two papers in supply chain design : supply chain configuration and part selection in multigeneration products
title_short Two papers in supply chain design : supply chain configuration and part selection in multigeneration products
title_sort two papers in supply chain design supply chain configuration and part selection in multigeneration products
topic Sloan School of Management
url http://hdl.handle.net/1721.1/9682
work_keys_str_mv AT willemsseanpeter twopapersinsupplychaindesignsupplychainconfigurationandpartselectioninmultigenerationproducts
AT willemsseanpeter optimalpartselectionstrategiesformultigenerationproducts