Typescript (photocopy). / Digitized by Kansas Correctional Industries

Die Prozesse und Aktivitäten der petrochemischen Industrie bieten aufgrund ihrer Vielfalt und Komplexität meist ein großes Potenzial für Verbesserungen. In diesem Beitrag sollen anhand kurzer Fallbeispiele, die in Kooperation mit OMV entstanden sind, drei solcher Optimierungspotenziale beispielhaft aufgezeigt werden. Dabei wird der Fokus auf die Downstream-Logistik gelegt und die Distribution der raffinierten Endprodukte zu den Endkunden (Tankstellen) analysiert. Auf strategischer Planungsebene werden die optimalen Standorte von Tanklägem bestimmt und die ökonomische und ökologische Performance verschiedener Netzwerk-Designs verglichen. In einem Fallbeispiel zur taktischen Planung wird ein Optimierungsmodell zur Planung der Transportmengen in einem Distributionsnetzwerk mit stochastischer Nachfrage dargestellt. Die effiziente Tourenplanung von den Lkw zu den Tankstellen stellt schlussendlich ein operatives Planungsbeispiel dar.

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 52-53). / To be competitive, businesses must make supply network design decisions, but often with only limited information and under uncertain conditions. How can an organization understand trade-offs between supply network decisions, without relying on complex, black-box models that require extensive data collection and hidden assumptions? We apply approximation methods to estimate and compare total logistics cost of supply network designs under various business conditions, such as variations in demand, changing costs, and shifting production policies. The method is applied to the real-world example of XYZ Co, evaluating network design choices for a new, rapidly growing product category: fresh foods. The method is used to evaluate tradeoffs between five distinct network designs for supply of these highly perishable foods to XYZ Co stores from a sole regional supplier. The model provides insights to help understand tradeoffs and key cost drivers, thereby channeling subsequent, more intensive and time- consuming analysis. / by Cyril Khamsi and Veronica Stolear. / M. Eng. in Logistics

The aim of this study was to investigate the effect of frequent operational changes on the repairs and maintenance of public lighting in the Energy and Electricity Division of the City of Tshwane Metropolitan Municipality as a result of management decisions. The results of the study showed contrasting opinions and perceptions amongst all participants on the repairs and maintenance activities of public lighting. Both employees working in the maintenance operations and public lighting sections agreed that their sections were performing the repairs and maintenance of public lighting satisfactory. Customers and community leaders on the other hand agreed that the maintenance operations sections are performing the repairs and maintenance of public lighting satisfactory as compared to public lighting section. All employees were in favour and support of decisions taken respectively since these decisions were beneficial to their respective sections, but however they were concerned on the frequency of decisions taken by top management and changes implemented within their respective sections as these decisions and changes created confusion and conflict amongst employees. All sections involved in the repairs and maintenance of public lighting were faced with numerous similar challenges that created deficiencies and ineffectiveness on the maintenance activities of public lighting and that contributed to enormous complaints from customers and community leaders on the service rendered by the division.

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 42-43). / This thesis analyzes the impact on prices and capacity of trucking industry due to the introduction of ELD mandate. This mandate requires truck drivers to record their working hours in a specified electronic device instead of a pen and paper method. This thesis utilizes the change in average truck driver working hours, cost of ELD equipment and distance from origin to destination of truck loads to determine the potential impact on trucking market. The models used provide an estimation of the impact on capacity and cost and the likelihood of impact on the economics of trucking industry. / by Chan How Law. / M. Eng. in Logistics

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 46-47). / Large pharmaceutical companies struggle to find innovative ways to reduce work-in-process inventory in their production facilities. In our research, we focus on the tradeoff between inventory and production capacity through investing in new facilities and equipment. This tradeoff will depend on the company's objectives and what it is willing to give up in return for reducing inventory. We found that increasing capacity to reduce work-in-process inventory by investing in new facilities is not always the most favorable approach in terms of net present value. However, for flexibility or lead-time improvements, it may make sense to proceed with the investment. We developed multiple scenarios considering the company's future plans to reduce inventory or grow. These scenarios provide insights into the factors that improve the attractiveness of the investments and those that do not. Our financial analysis along with the guidelines and procedures that we have developed help the sponsor company most effectively reach its goal to reduce its work in process inventory. / by Karim Kamareddine and Yihong Yao. / M. Eng. in Logistics

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 66-67). / Order-picking is an integral operation in warehouses and distribution centers (DC), consuming considerable operating resources and expenses. Numerous studies have attempted to optimize the efficiency and reduce the cost of order-picking. In working with a partner company, this thesis evaluates a proposed mechanism for piece-picking that would achieve this end. The company has a shelf-pack number for each SKU, whereby the SKU must be piece-picked in a quantity that is a multiple of the number. The company has proposed to change this number from 1 to 2 to raise the number of units per pick and reduce the number of picks needed for a SKU. In this thesis, simulation is performed on the company's shipment data from DC to store to reveal the merits and demerits of this scheme. SKUs are segmented into different groups based on their suitability for this scheme as a means of mitigating the negative repercussions of the proposal. The scheme can reduce the number of picks and related costs needed, but it causes a shift of inventory from DC to store, thus creating an increase in store inventory. However, SKUs can be allotted into groups suitable or unsuitable for the scheme depending on the amount of savings generated for a given amount of impact on store inventory. The scheme's benefits and impact on store inventory are thoroughly examined, and their implications on DC inventory are also discussed. This thesis offers a novel perspective into piece-picking optimization, and it finds the proposed scheme viable, simple, and flexible. / by Stephanie Hsuan-Chia Chen and Eunji Han. / M. Eng. in Logistics

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 55-57). / Manufacturers and retailers are increasingly interested in exploring different ways to optimize their fulfillment of e-Commerce orders. An approach that is often considered is drop-shipping, where the manufacturer takes on the responsibility of shipping directly to the consumer. Retailers are interested in this model as it shifts their inventory responsibility upstream and frees up working capital. Manufacturers are intrigued by drop shipping as a means of capturing lost sales on high-value, seasonal products that retailers might be under-stocking. These manufacturers currently lack the retailer-side inventory availability information to assess the extent of this opportunity. We propose a framework to show manufacturers and retailers how to examine the key issues of drop shipping such as capacity constraints, per unit distribution cost, changes in working capital, cost allocations in the supply chain and delivery time to customers. We also explore how to bridge information gaps to gauge inventory availability and lost sales using Web Extraction System data. We demonstrate our framework by partnering with a CPG manufacturer interested in implementing drop-shipping. Using their data from an existing facility and a selected retailer, we simulate drop shipping orders for a specific set of products during the holiday season that are normally fulfilled by the retailer. Firstly we show that in this scenario, the manufacturer will not exceed their current facility's capacity and will require minimal changes to their existing operations. Using Activity-Based Costing (ABC), we then find that the overall channel costs are only slightly more expensive than those in the traditional model. However, the manufacturer takes on a much larger portion of those costs than they would in the existing model. The transfer of the distribution labor and inventory holding costs from the retailer to the manufacturer drives these cost shifts. As expected, we found significant working capital benefits for the retailer when shifting to drop-shipping. To understand the potential gains that could be achieved from capturing lost sales, we paired data from a Web Extraction System with Point-of-Sale data to obtain previously unavailable retailer inventory information. Contrary to initial expectations for this scenario, the retailer displays very high inventory availability, making lost sales a weak justification for adopting this model. Lastly, using publicly available time-in-transit tables, we model the changes in delivery time that customers experience. The results show that the average delivery time increases by one day for most locations in the US. Our framework and analyses contribute to developing an understanding of the opportunities and implications of drop shipping. In addition, we introduce new techniques manufacturers can use to deal with asymmetric inventory information. / by Christopher Alan Creyts and Nora Weisskopf. / M. Eng. in Logistics

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 71-72). / The Hershey Company faces a risk of obsolescence across its supply chain as it follows the First In First Out (FIFO) technique at its manufacturing plant distribution center instead of distributing goods based on either the demand at each retailer's end or the useable shelf life of the goods being distributed. The two different stages at which a product can turn obsolete are a) when it reaches expiry and b) during the end of a season or promotion run for a specialty product. The existing picking strategy does not differentiate between orders based on the type of products or the volume served by destination/retailers. This could lead to the risk of obsolescence or return of products in some retailers as the products reach expiry before sales at the retailer's end due to insufficient remaining shelf life. Through this project, we aim at reducing the total obsolescence of a product by proposing a new picking strategy based on the sales volume at each distribution channel and the remaining shelf life of products at the manufacturer's site. The cut-off value or the ratio of volume served by fast moving customer distribution centers to the total volume at which the obsolescence within the supply chain would be minimal was determined for a set of products using an excel simulation model. Hierarchical clustering was performed on all products to form two clusters of distribution centers based on the shipped order quantities and the fractional volume served by both the clusters was determined. The new model was proposed for those product-distribution center combinations with fractional volumes greater than the cut-off as they are most likely to benefit with reduced level of obsoletes. / by Ranjani Rajan and Ying Wang. / M. Eng. in Logistics

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Supply Chain Management Program, 2016. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 88-92). / The oil and gas industry is very volatile; it is characterized by unpredictable cycles of sharp rises and plunges in oil prices. This cyclical nature presents a huge challenge for companies that are operating in the industry. Companies have to be able to ramp up their production quickly so that they have enough capacity to meet increasing demand when oil prices go up and be able to survive when oil prices go down. In this context, companies have to make sure that their suppliers are flexible to changing demand. Assessing supplier flexibility is one of the major challenges facing our thesis sponsor company, which is one of the largest oil field services companies in the world. Our project has two primary goals. First we would like to develop a sound understanding of common factors that characterizes flexibility of suppliers in oil and gas industry. Second, we would like to develop the first version of a self administered audit able instrument to assess the flexibility of suppliers. We developed a comprehensive list of factors influencing flexibility of suppliers through systematic literature review and interview research methodology. We then designed a survey to validate the flexibility factors using statistical measures. Finally, we developed the first version self assessment instrument using Microsoft Excel. The instrument would help our thesis sponsor company to assess the flexibility of their supply base. The findings of our research would be useful to companies operating in seasonal and cyclical industries. The research might help companies develop insights regarding flexibility of their suppliers to adapt to changing market demands, and develop strategies to balance supply and demand at minimum cost. / by Peng Bi and Remya Pushpangatha Kurup. / M. Eng. in Logistics