Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2007. / Includes bibliographical references (leaves 54-55). / The objective of this thesis is to analyze the trade-offs of two retail replenishment strategies, DSD (Direct Store Delivery) model and Traditional model. Conceptual and cost models are set up to analyze the trade-offs, and numerous interviews were conducted to obtain insights from academic scholars and industry practitioners. Retail products, retailers and suppliers are categorized according to their synthesized attributes. Based on such categories, retail replenishment strategies are tested to determine which categories are more suitable for DSD or traditional strategies. Besides qualitative analysis on tradeoffs of alternatives, quantitative cost models are built to quantify the tradeoffs between alternatives. / by Jiaqi (Philip) Kuai / M.Eng.in Logistics

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2011. / This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. / Cataloged from student submitted PDF version of thesis. / Includes bibliographical references (p. 109-121). / The Energy Box is an always-on background processor automating the temporal management of one's home or small business electrical energy usage. Cost savings are achieved in a variety of environments, ranging from at pricing of electricity to real-time demand-sensitive pricing. Further cost savings derive from utilizing weather forecasts to manage local rooftop wind turbines or solar photovoltaics and/or to anticipate price swings from central utilities. The main motivation of this research is to design, construct and test a prototype software architecture for the Energy Box that can accommodate a wide variety of local energy management environments and user preferences. Under some scenarios, appliances can be optimally controlled one at a time, independent of each other. In other scenarios, coordinated control of appliances, either simultaneous or time-sequenced, provide better outcomes. Stochastic dynamic programming is the primary optimization engine. The optimization goal is to balance cost minimization with thermal comfort as specified by consumer preferences. The results demonstrate that the desired general energy management platform is feasible as well as desirable for saving money on electricity while maintaining comfort preferences. Scaling up to neighborhoods, towns and cities, a key contribution is improved understanding of single-home electricity demand dynamics induced by automated decisions. Further research will determine how such local automated decisions affect the broader smart grid with regard to resilience, stability and pricing. / by Daniel James Livengood. / Ph.D.

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2013. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 60-62). / The chemical industry is a highly competitive and low margin industry. Chemical transportation faces stringent safety regulations meaning that Cost-To-Serve (C2S), costs associated with products net flow from manufacturers to customers, consists of a big percentage of the delivered product cost. Supply chain practitioners in this industry need to make key logistics decisions to minimize C2S for profitability and business sustainability. In this thesis, we present a network optimization model to minimize the total C2S for SKU-1, a low volume and low margin industrial chemical with a customer base spread across North and South America. We use a mathematical linear program to investigate the effects on total C2S when available production capacities and sources are shifted. We develop the model as a minimum cost flow problem, and more specifically, as a production and transportation problem (PTP). We analyze the total C2S under three scenarios. In the baseline scenario there are three manufacturing facilities in the Midwest, South East, and Europe. In the second scenario, where the Midwest supplier is excluded from the network, the C2S increases by 3%. In the third scenario, where both the Midwest and South East facilities are excluded, the C2S increases by 13%. Under each scenario we calculate the C2S for each individual customer and identify the customers most impacted by the change in supply. Our results provide insight regarding the changes expected to the supply network under capacity constraints and how those changes may affect the profitability of individual customers. / by Fred Dacha and Li Jin. / M.Eng.in Logistics

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2014. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 57). / The concept of using different supply chain strategies for different products or product families is a fairly simple component of supply chain management. This practice, known as SKU segmentation, is widely used by many companies. However, most research and success stories involve a relatively stable portfolio of brands and products, and products with easily identifiable attributes such as profit margins and demand. This thesis attempts to determine if and how a SKU segmentation can be conducted when product mix is constantly changing and many key variables used in traditional segmentations are not known in advance. To explore this problem, we analyze one year of purchase order data and shipment data provided by our sponsor company. The objective is to use data from purchase orders to predict which items are candidates for different supply chain configurations (i.e. an expedited supply chain for time-sensitive products or an efficient supply chain if there is opportunity to reduce cost and still meet demand). We start by mapping the current supply chain process using historical data and interviews with employees. The key piece of the process we want to understand is how early or late products arrive at destination in relation to when those goods are expected in retail stores (a metric we refer to as "destination dwell time"). We then use visualization and statistical analysis to determine what PO information is related to the destination dwell time. After testing various multi-factor regression models to predict the length of this dwell time, we conclude that a neural network regression model predicts this time most accurately. We then assess whether or not it is feasible for the sponsor company to use this model to "speed up" or "slow down" the supply chain for different products as needed. / by Huiping Jin and Brad Gilligan. / M. Eng. in Logistics

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2014. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 56). / Without using any order acceptance criteria, retail companies distributing products with private transportation fleets are not able to maximize their profits because they are not adequately utilizing their capacity. The objective of this paper was to create and validate a model to determine if historical demand data can be used by retail firms operating private fleets to make effective real-time order acceptance/rejection decisions with the purpose of eliminating unprofitable orders in a short-haul transportation setting. A Java tool was generated to instantaneously decide whether or not to accept an order depending on the order location and time of receipt. The model was tested against optimal decisions using total demand knowledge and several alternative real-time decision-making strategies. The model was found to significantly outperform the alternative real-time decision making strategies and provided profits approximately eight percent lower than the optimal decisions. We conclude that using historical demand probabilities is useful in informing the decisions of retail firms seeking to utilize private fleets efficiently and increase profitability through cost reduction. / by Hiral Nisar and Joshua Rosenzweig. / M. Eng. in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2003. / Also issued in leaves. / Includes bibliographical references (p. 113-120). / The terrorist attacks undertaken by Osama bin Laden's al Qaeda organization on the morning of September 11, 2001 ushered in a new era of indiscriminate global terrorism characterized by an unprecedented focus on security, risk management, and business continuity. The probability of future attacks, coupled with government response to the threat, has introduced myriad new challenges that virtually every manufacturer, distributor, and retailer engaged in global commerce must now face. This thesis will explore and analyze the impact that the "new" terrorist threat has, and will continue to have, on the supply chains of those manufacturers, distributors, and retailers by studying relevant historical disruptions; in essence, looking to the past to glean important insights as to how enterprises can best prepare for the future. Throughout history, numerous disruptive events have occurred that bear comparison to a potential terrorist attack. These events include earthquakes, hurricanes, floods, industrial accidents, and labor strikes, as well as other terrorist attacks. By studying such events in detail and understanding the impact that they had on the supply chains of companies that were affected, important lessons can be learned regarding how best to prepare for, and react to, future disruptions. This thesis project ultimately seeks to collect, analyze, and synthesize historical data with the goal of presenting insights and conclusions that can be applied by businesses in the current operating environment to best prepare their supply chains for future disruptions, whether natural or man-made. All research results are organized and presented in terms of the nature of the specific supply chain disruption (key supplier down, transportation capability disrupted, etc.) / (cont.), as opposed to the nature, location, or other defining characteristics of the disaster itself. Conclusions consist of a discussion of the unifying themes and the relevant lessons learned. The thesis then goes on to recommend ten prescriptive measures that organizations can take in today's business environment to strengthen their supply chains, minimize their exposure to future disruptions, and maximize their operational resilience. / by Christopher B. Pickett. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 77-78). / This thesis explores the strategies, methodologies and tools for an optimal management of Reusable Transport Items, such as containers or chassis, in an extensive multi-depots network. We use an ocean shipping company operating globally to propose a broad, comprehensive and integrated system for an optimal management of the fleet, embracing technology, processes and monitoring system. The ability to track these assets is the first step to visibility and fleet optimization and we will question the opportunity for a company to invest in a real time tracking technology. In highly complex logistic networks, the challenge is to get the right equipment at the right place at the right time, in a cost efficient manner and with a fleet size as small as possible. Beyond increased visibility through tracking capabilities, we show that choosing an appropriate utilization metrics helps identify and quantify other areas of improvement. Using actual data, we evaluate to what extent the fleet size can be reduced by improving asset utilization and how leasing also impacts operating costs. We also show how the structural imbalance of trade (some regions being net exporters while others are net importers) impacts both global repositioning policy and local inventory policy, with depots of different profiles requiring different policies. Understanding this systematic and systemic approach of fleet management, we assess the contribution of tracking technology capabilities to these potential improvements. / by Jean-Marie Lefebvre and Dameng Yue. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2005. / Includes bibliographical references (leaves 65-66). / This thesis reviews the current logistics processes and issues for container shipments in the supply chain. In particular, the problems associated with container shipments from China to the US, via the Hong Kong Port, includes low end-to-end visibility, security concerns, low product- handling productivity, and unmanageable unexpected events. Research was conducted using results from both interviews and surveys to collect information about the current process. This thesis also proposes the use of RFID-enabled logistics to improve the current processes and discusses the impact and value of the RFID-enabled processes. The research results show that through RFID technology, collaborators in the supply chain can improve product-handling productivity, supply chain visibility, and product security. Furthermore, the RFID application for supply chain management can increase the use of direct shipment and cross-docking, which result in considerable cost savings to both a manufacturer and a retailer. / by Taehee Han. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2003. / Includes bibliographical references (p. 84-85). / Companies in the footwear and apparel industry must deal with many supply chain challenges, including intense competition, long production lead times, reliance on international carriers, and shifting consumer preferences. For many large companies, only design and distribution are performed internally. This places pressure on footwear and apparel companies to continually improve supply chain management. This study considers a company in the footwear and apparel industry and its option to consolidate distribution for two separate regions into one. One region currently serves nine times the demand of the other region. In addition, there are differences in labor and transportation costs between the two regions. The company would like to understand the financial, operational, and service impacts associated with consolidation. This study uses a total logistics system approach with particular focus on inventory. The results indicate that if the company were to consolidate distribution for the two regions into one, then there would be a slight total logistics system cost increase. This is due mainly to differences in labor and transportation costs between the two regions. However, sensitivity analysis indicates that if some costs can be reduced, there may actually be potential savings associated with consolidating the two regions. / by Pablo Tercero. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. / Includes bibliographical references (leaf 48). / This thesis analyzed truckload shipment transactions from 2006 to 2008 in order to compare planned procurement activity to actual procurement activity. The research specifically focused on three costs: Primary, Actual and Market. Primary cost is the cost agreed to pay to the primary carrier and is usually contractually fixed in advance. The actual cost is the cost paid to the carrier that hauls the load and the market cost is the average cost for the lane that a shipper should pay. This market cost is a benchmarking cost available to the shippers. The comparison of planned and actual is important because it helps to develop a strategy that decreases transportation costs by identifying overpaid lanes and carriers and it helps to monitor and make corrective decisions. The research suggests that the matching of planning and execution occurred in less than 10% of the lanes and there are under and overpaid lanes. The execution rendered more than 50% of overpaid lanes and the planning showed a commitment to overpay in 45% or more of lanes. Finally this research proposes ideas to improve the truckload procurement strategy because shippers cannot afford to "plan to waste". / by Carlos Gustavo Castro Izaguirre. / M.Eng.in Logistics