Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2007. / Includes bibliographical references (leaves 82-83). / Developing a cyclical schedule for producing multiple items on a single processor under stochastic demand that minimizes total setup and inventory holding costs is an important problem. This problem is faced in many continuous production environments such as chemical or petrochemical production, where the costs of switching production from one item over to another are very high. Due to high changeover costs, each item is produced in large batches and its demand is fulfilled from the finished goods inventory. Holding this inventory incurs inventory carrying costs. Therefore, good production planning policies are required to determine when and how much of each item should be produced so that the total cost of setup changeovers and holding inventory is minimized, while ensuring that sufficient inventory is available to meet customer demand which varies over time. In this thesis, I present the work done to develop production planning policies for a large chemical manufacturing company that operates in the environment described above. The problem described above is called the Economic Lot Scheduling Problem (ELSP) and is known to be NP-hard. So, optimal solutions are hard to find and one has to rely on heuristic procedures to find good solutions. / (cont.) In this thesis, I first present four fundamental inventory planning models relevant to the ELSP and discuss research works that specifically address the ELSP. I then describe the characteristics of the production and the planning processes at the chemical manufacturer where this work was carried out and present a heuristic procedure to solve the ELSP. This is followed by a demonstration of how the procedure can be applied at the manufacturing company and presentation of the results of a simulation experiment conducted to test the effectiveness of the solution. Finally, I will discuss two important issues related to the implementation of the solution at the company. / by Shardul Sharad Phadnis. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2013. / Cataloged from PDF version of thesis. / Includes bibliographical references. / The U.S. Aerospace and Defense industry is a vital organ for national security and humanitarian disaster response as well as an economic powerhouse creating jobs and driving exports. News headlines often stop at the sale of complex, hi-tech and expensive defense systems short of capturing the critical aftersales support. However, it is the aftersales support that enables the mission to be accomplished. Without a well-functioning product support supply chain, even the most advanced fleet of fighter jets is rendered useless. This paper looks in-depth at such support supply chains within top industry companies. The investigation spans the current and desired states, and gaps the difference. It also establishes a visionary roadmap to get to the desired state and ensure optimum performance. The research proposes the "+Add Model", an easy to understand 5-level framework to achieve Global Optimization. The +Add Model acronyms stand for Aggregate Dynamic Derivatives, which are key elements in the framework. Aggregate refers to enabling a one integrated supply chain approach at the prime-integrator to benefit from economies of scale elements such as risk pooling and large discount buys. Dynamic refers to enabling a continuously improving supply chain through feedback loops making the supply chain agile. Derivatives refer to the realization that the supply chain is full of hidden derivatives (or levers). As in calculus, the derivative is a measure of how a function changes as its input changes. The +Add model identifies those main supply chain derivative functions and inputs, and then aims to fine-tune them to drive performance. By adopting the +Add Model a prime-integrator is able to improve demand forecast accuracy (Level-1), system planning lead times (Level-2) and increase collaboration with the supplier (Level-3). In turn, levels 1 through 3 enable significantly reduced supplier lead times (Level-4). Finally, as various programs apply the +Add Model approach, Aggregation (Level-5) provides additional benefits such as increased forecast accuracy, discount buys, and lower safety stock inventory through centralization. The +Add Model has a significant impact to the button line, analysis reveals substantial improvements to earnings, economic profit and cash flow while maximizing performance and reducing risk. / by Mina Riwes. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2005. / Includes bibliographical references (leaves 148-150). / This study explores the current supply chain trends in the pharmaceutical industry. The main objective of the study is to characterize the pharmaceutical industry and identify excellent supply chain practices. Indeed, the pharmaceutical industry is not renowned for its supply chain management capabilities, unlike many other highly publicized industries that have profitably exploited their supply chains. It is, thus, an interesting topic for research. A closer look, however, reveals that our initial assessment of the industry is colored by the popular financial criteria prevalent among analysts and the investing public. This research will suggest that the pharmaceutical industry does care about its supply chain, although, a reevaluation of the supply chain strategy is necessary for addressing problems effectively. In fact, we will argue that an excellent supply chain is paramount to the pharmaceutical industry's success. We subscribe to the view that a supply chain should be considered excellent if it is able to effectively support a business strategy. The business objectives of the pharmaceutical industry include the need to ensure that the drugs are protected from adulteration and counterfeiting, removed and destroyed in a safe and environmentally friendly manner, and made available to patients at all time. Clearly, these are not commonly used metrics to assess the performance of a company or a supply chain. / (cont.) Instead, characteristics that have direct impact on the short term financial well being of the company, such as reduced lead times, increased flexibility, and lower cost are the ones that take precedence. As a result, there is a huge gap between the actual and perceived capabilities of the pharmaceutical supply chains. Furthermore, there are clear indications that a radical transformation of the pharmaceutical industry is on the horizon which will require further strengthening of its supply chains, rendering it even more critical to success. / by Mahender Singh. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. / Includes bibliographical references (leaf 66). / This thesis discusses the tradeoff between transportation cost and the level of service in cold chain transportation. Its purpose is to find the relationship between transportation cost and the level of service in cold chain transportation. Regression models are built to quantify the additional cost of superior quality cold chain for both Chiquita and its carriers, and analyze the relationship between such cost and customer service level. In order to guarantee the freshness of salads and fruits, cold chain transportation has to meet strict quality standards and additional costs occur due to efforts required to maintain and monitor the transportation performance. The thesis takes quantitative approach to demonstrate the relationships among the quality standards required, the cost associated, and the customer service level reached. The temperature quality standards are mainly measured by monitoring data from RFID monitor Sensitech. The cost data are collected from Chiquita's historical carrier rates. The customer service level is measured in two dimensions, on time drop-off, and on time pick-up. The thesis also takes qualitative approach by a survey on carriers' additional cost of offering superior cold chain transportation among Chiquita's carriers. No correlation is found between transportation cost and the level of service in cold chain transportation. Therefore carriers with best cold chain management don't necessarily charge the highest. / by Saiqi Liu. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2010. / Cataloged from student submitted PDF version of thesis. / Includes bibliographical references (p. 78-86). / Liquid fuels such as gasoline and diesel are traditionally derived from petroleum. Since petroleum has the potential to be exhausted, there is interest in large scale production of fuels from renewable sources. Currently, ethanol and bio diesel are liquid fuels that are mainly derived from field crops. This paper examines the supply chain challenges and issues that exist for bringing biofuel production up to scale. One major challenge that exists is how to transport the feedstock from a farm to a refinery in the most cost efficient manner. One way to improve transportation efficiency of feedstock is to increase the energy density of the feedstock. However, increasing the density of a feedstock comes with a cost. We use switchgrass as a case study and examine the tradeoff between higher transportation costs in transporting a less energy dense feedstock to processing a feedstock to increase its energy density. We show that creating ethanol from switchgrass in the United States is not competitive in price to gasoline without government subsidies, but as the supply chain matures, efficiencies gained will narrow the gap. / by Sooduck Chung [and] Michael Farrey. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. / Includes bibliographical references (leaves 62-64). / LargeCo, a large multinational consumer goods manufacturing and distribution company, has been pursuing initiatives to improve the responsiveness of its supply network. The impact of these initiatives on the supply network is measured through a few Key Performance Indicators (KPIs). LargeCo has invested in a responsive supply chain so that it can respond swiftly to unpredictable market demand and minimize lost sales. Reduction in lost sales leads to growth in sales. LargeCo is interested in finding out if its responsive supply chain is contributing to sales growth. In particular, LargeCo would like to determine whether improvement in KPIs, driven by improvement in the responsiveness of the supply chain, has a relationship with improvement in sales. LargeCo uses a measure of sales known as Sales Net of Effects (SNE) which measures sales net of the effects of discounts, marketing and promotions. Establishing a relationship between KPIs and sales will help LargeCo measure the value of responsiveness in its supply network. This research project develops an analytical framework using an econometric model to determine if relationships exist between the KPIs and sales and a causal model to explain the relationships. The econometric model shows that relationships exist between two of the KPIs - Days of Inventory and Supply Chain Cycle Time, and sales. The causal model explains how these KPIs and sales are linked. / by Jaime Garza Ramírez and Subramanian Mambakkam Suryanarayanan. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2006. / Includes bibliographical references (leaves 86-87). / Non-profit humanitarian relief organizations have typically been unable to measure the performance of their supply chains due to an inability to centrally capture data from operations. With the recent development and implementation of information technology systems that can support the logistics function of these organizations, the data is now available to measure performance, but what is still lacking is a central framework of metrics that measures performance according to the organization's strategic goals. First, this thesis reviews the best practices noted in performance measurement systems of the logistics functions in military and commercial organizations and applies them to the humanitarian sector. Second, the thesis suggests a framework of key performance indicators to be implemented in an international non-profit humanitarian organization based on the unique strategic goals of the sector. The thesis then applies this proposed framework to two actual operations performed by this organization. / (cont.) The analysis performed herein proves that a measurement system would help strengthen the organization's ability to deliver goods to beneficiaries more efficiently and effectively. Finally, the thesis addresses feasibility issues of implementing a measurement system in the non-profit sector and also describes the next steps of opportunities related to measurement systems within humanitarian logistics. / by Anne Leslie Davidson. / M.Eng.in Logistics

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2008. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 220-224). / Commonality, or the sharing of components, processes, technologies, interfaces and/or infrastructure across a product family, represents one of many potential tools for increasing corporate profitability. Industrial interest in commonality is strong, but results appear to be mixed. A rich stream of academic research has examined commonality (typically under terms such as "product platforms" and "platform-based development") but has not emphasized the benefits and penalties of commonality, a topic that is critical to effective product family planning and lifecycle management, and ultimately, to improving corporate profitability. This dissertation leverages field research and a simple cost model to examine commonality in the context of complex product families. The core research effort was focused on conducting seven case studies of complex product families (aircraft, automobiles, satellites, and capital equipment). While the case studies provided a wealth of general insights, the studies were focused on examining divergence and lifecycle offsets, two critical topics that influence the benefits and penalties of commonality, yet appear to be inadequately addressed by the literature. Divergence refers to the tendency for commonality to reduce with time, for both beneficial and non-beneficial reasons. Lifecycle offsets refer to temporal differences between the lifecycle phases of product family members. Lifecycle offsets alter the potential benefits and penalties of commonality and their apportionment to individual products. / (cont.) Additionally, key factors identified during the literature review and case studies were translated into a simple two-product cost model of development and production in order to demonstrate key research insights in a more analytical manner. The case studies provide a refined view of commonality that reflects the realities of industrial practice. The cases indicate that complex product families are developed in a mostly sequential manner; that commonality is highest during the product family planning phase and then declines significantly throughout the lifecycle; and that development focuses more on reusing prior product baselines than on enabling future, potential commonality. The case studies also identified challenges in the evaluation of commonality and its lifecycle management. The case findings and simple cost model contribute to an improved understanding of commonality, while the recommendations offer potential paths to improved corporate profitability. / by Ryan C. Boas. / Ph.D.

Thesis (S.M. in Engineering and Management)--Massachusetts Institute of Technology, Engineering Systems Division, 2012. / Cataloged from PDF version of thesis. "June 2012." / Includes bibliographical references. / Venture Capital (VC) has been an important driver of innovation, entrepreneurship and economic growth in the U.S. and around the world for the past few decades. The astounding success of Venture Capital prompted various countries' attempts to emulate the U.S. model and create an indigenous venture capital industry. Several attempts are being pursued to emulate this success and create an indigenous Venture Capital industry in India. This thesis examines efforts to create a Venture Capital and Private Equity industry in India and the various factors that influence this process. / by Shravan K. Surineni. / S.M.in Engineering and Management

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. / Includes bibliographical references (leaves 78-79). / This thesis examines a distribution multi-echelon production-inventory system subject to stochastic demand in the steel industry. The sponsor company, Ternium (a South American steel producer), needs to provide short service times under low inventory costs. The goal of this thesis is to generate a model and conclusions to determine where and how much inventory to hold to satisfy a required service level. Risk pooling is an important consideration for this problem; once a steel product advances in the production process, it has less possibilities of use for different customers. Since distribution stochastic multi-echelon inventory systems have no known optimal formulated solution, algorithms and simulation will be used determine a strategy. The analysis uses simulation as the main method to solve the problem. A distribution multi-echelon model is developed. Different cost scenarios are defined and run. Next, the best set of solutions, defined as the service level-holding cost efficient frontier, is found. To increase the understanding of the problems and provide a better interpretation of the results, we test the sensitivity of the solution and the impact of the input parameters. Later, we explore different ways of solving the problem using alternative modeling methods to determine the base-stock levels. Finally, these solutions are tested with simulation and compared with the best results. Through the analysis, we find that simulation is a powerful tool for finding the best inventory strategy, but the results are very sensitive to cost parameters. / (cont.) Modeling allows important saving costs if we compare the best solutions found with the simplest policy used by the company (allocating all safety stock to the echelon closest to the customer). Finally, we demonstrate that some of the alternative modeling methods used to allocate inventory perform well, but simulation is an important complement to test and fine-tune these models. / by Juan D. Iocco. / M.Eng.in Logistics