Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 76-77). / This thesis presents a model to determine safety stock considering the distinct planning parameters for a pharmaceutical company. Traditional parameters such as forecast accuracy, service level requirements and average lead-time are combined with a nontraditional upstream uncertainty parameter defined as supply reliability. In this instance, supply reliability measures uncertainty in the supply quantity delivered rather than variability in the lead-time for delivery. We consider the impact of the safety stock using two products: a proprietary product that is patented and a generic product that recently went off patent. Sensitivity analysis is performed to provide insights on the impact of variations in input parameters. The study shows that there is a significant difference in safety stock between the proposed model and the current model used by the company. / by Prashanth Krishnamurthy and Amit Prasad. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2007. / "June 2007." / Includes bibliographical references (leaves 151-152). / This thesis focuses on developing strategies to improve coordination between private businesses, relief agencies, and the government in order to deliver more efficient and effective disaster relief during major national disasters within the United States. We approached the study of humanitarian disaster relief using three contexts - (1) it focuses on disaster relief for "major disasters" which are defined as an event or events that are sufficiently large in scale and impact that overwhelm local response capacity and resources, (2) the study is confined to the geographical context of the U.S. and (3) it uses the Hurricane Katrina disaster for the insights and lessons learned. Based on literature research, interviews, and case studies, we were able to develop a framework for developing effective partnerships between private corporations, NGOs and relief organizations that would help strengthen disaster relief efforts. We also developed recommendations for further improvements in disaster relief supply chains and other supporting public initiatives. / by Sheau Kai Lam and Vanessa Melofchik. / M.Eng.in Logistics

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2010. / 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. 254-263). / Committees of experts are critical for decision-making in engineering systems. This is because the complexity of these systems requires that information is pooled from across multiple specialties and domains of knowledge. The social elements of technical decision-making are not well understood, particularly among expert committees. This is largely due to a lack of methodology for directly studying such interactions in real-world situations. This thesis presents a method for the analysis of transcripts of expert committee meetings, with an eye towards understanding the process by which information is communicated in order to reach a decision. In particular, we focus on medical device advisory panels in the US Food and Drug Administration. The method is based upon natural language processing tools, and is designed to extract social networks in the form of directed graphs from the meeting transcripts which are representative of the flow of information and communication on the panel. Application of this method to a set of 37 meetings from the FDA's Circulatory Systems Devices Panel shows the presence of numerous effects. Prominent among these is the propensity for panel members from similar medical specialties to use similar language. Furthermore, panel members who use similar language tend to vote similarly. We find that these propensities are correlated - i.e., as panel members' language converges by medical specialty, panel members' votes also converge. This suggests that voting behavior is mediated by membership in a medical specialty and supports the notion that voting outcome is, to some extent, dependent on an interpretation of the data associated with training, particularly when a small number of interpretations of the data are possible. Furthermore, there is some preliminary evidence to suggest that as clinical trial data ambiguity and difficulty of decisionmaking increases, the strength of the mediating effect of medical specialty decreases. Assuming a common decision is reached, this might indicate that committee members are able to overcome their specialty perspective as the committee jointly deals with hard problems over longer periods of time. In cases where the panel's vote is split, a lack of linguistic coherence among members of the same medical specialty correlates with a lack of linguistic coherence among members who vote the same way. This could be due to the presence of multiple interpretations of the data, leading to idiosyncratic or value-based choice. We also find that voting outcome is associated with the order in which panel members ask questions - a sequence set by the committee chair. Members in the voting minority are more likely to ask questions later than are members in the voting majority. Voting minority members are also more likely to be graph sinks (i.e., nodes in a social network that have no outflow) than are voting majority members. This suggests an influence mechanism on these panels that might be associated with framing - i.e., later speakers seem to be less able to convince other panel members to discuss their topics of interest contributing to these members' minority status. These results may have some relation to FDA panel procedures and structure. Finally, we present a computational model that embodies a theory of panel voting procedures. Model results are compared to empirical results and implications are drawn for the design of expert committees and their associated procedures in engineering systems. / by David André Broniatowski. / Ph.D.

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2014. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 52). / Economic instability and poor or lacking physical infrastructure are some of the factors that contribute to price inflation along the supply chain in Zimbabwe. Our research, in partnership with one of the Big Pharma companies, addressed two intertwined yet distinct research areas. On one hand, we evaluated how price reductions (i.e. subsidy) offered by our partner company to the distributor translated down the value chain. On the other, we analyzed the costs of insourcing versus outsourcing of our partner's company distribution function, and the sales volumes at which the two alternatives are equivalent. We conducted a set of field interviews with local distributors and pharmacies; this combined with data gathered by a third party market research team and input from our partner company's South African business unit equipped us with the data required to address these questions. We realized how trust, information sharing and tailored incentive schemes played a pivotal role in the rollout of the price reduction scheme, making it relatively more successful for certain distributors, pharmacies, and product lines. Specifically, we were able to demonstrate how sales volume throughout the chain increased post subsidy implementation for two key distributors who passed on the largest price reductions as compared to the other distributors who were under review. In addition, through the application of inventory policies, such as economic order quantities and the power of two policy, and Monte Carlo simulation we were able to determine the impact that forecasting error, minimum order quantities, and sales volumes can have on the decision to outsource. At the current sales volumes experienced by our partner company, the minimum order quantity was greater than the economic order quantity for 80% of the products, which resulted in a 25% increase in inventory holding costs. / by Chelsey Graham. / 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 62). / The thesis attempts to answer the question which is commonly asked by retailers and manufacturers - what's the best way to deliver a product to the store? Specifically the thesis tries to understand and evaluate the impact on transportation and safety stock when a manufacturer transitions from a 100% DC delivery method to 100% Direct-To-Store (DTS) method. Drawing on the results of a case study on Niagara bottling, a leading private brand water bottle manufacturer in US, the thesis recommends strategies to minimize the cost impacts on safety stock and transportation. We developed the inventory and transportation models using one key product and two customers. Using sensitivity analysis and simulation technique, we tried to find the behavior of the transportation costs and safety stock at incremental phases during 100% DC to 100% DTS transition. The findings showed that transportation costs increase by 40% or more and dominate the cost structure as compared to safety stock cost changes. Secondly, we found that increasing order sizes or combining two customers on the route can lower the transportation costs by 4%. From an inventory standpoint, a shorter lead time reduced the safety stock in the total supply chain by as much as 26%. Since a shorter lead time increases the manufacturer's safety stock, he needs to develop a benefit-sharing contract with the retailer so as to create a winwin situation for both. Beyond a certain point (typically below lead time of 3 days), the transportation costs can rise and offset any safety stock savings. Finally, we observed that a collaborative forecasting process will benefit the supply chain in reducing safety stock by as much as 72%. / Amit Panditrao by and Kishore Adiraju. / M. Eng. in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. / Includes bibliographical references (leaves 68-69). / Lockheed Martin designs and builds commercial satellites to customers' specifications. The customers, such as telecommunications companies and weather forecasters, are very price sensitive and, usually, award contracts to the lowest priced bids. Lockheed manufactures satellites using a combination of in-house manufacturing, purchasing, and subcontracting (for subcontract parts). The subcontract parts constitute a majority of a satellite's costs. Lockheed uses contracts and other supply management techniques to stay competitive and to keep satellite, specifically subcontract part, costs under control. Some of the subcontract part contracts are managed under subcontract agreements called long-term agreements (LTA). A small supplier pool, long turnover (for bringing these suppliers onboard), regulatory requirements, and capital-intensive nature of the industry are important considerations in evaluating these LTAs. The LTAs embody the risks inherent in project supply chains, specifically, price, currency, and supply risks. In such events, LTAs can become a liability and can lead to monetary losses or discord with suppliers. This thesis provides an overview of the satellite supply chain, analyzes supplier relations to better understand the business dynamics, and analyzes LTAs to better control the satellite input costs. Key words: commercial satellite, contractor, long-term agreement, subcontract, Lockheed, subcontractor, LTA, satellite supply chain, contracts. / by Hem Singh. / 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 (pages 57-58). / This research aims to characterize and measure hierarchical, functional and geographical alignment within an organization in an effort to understand the individual's attributes of resilience within the broader organization's business strategy. In partnership with a multinational chemicals manufacturer, data was collected from product supply organizations through interviews, surveys and case discussions, in an effort to understand resilience awareness and strategic alignment. The results are primarily used to quantify differences between strategic direction set by executives and the tactical execution of individual contributors. Secondary analysis examines correlations in responses, and further compares results by segmenting respondents by level within the organization, tenure with the company, functional role and cultural background. Data collected through this study identifies a difference between the attitudes and perceptions of executives and those of individual contributors. Understanding this misalignment is important as external research has found that there can be a permanent market capitalization loss of 5-10% after an announcement of a major supply disruption. Whether the disruption is due to a geological event or a political uprising, being prepared to respond to such disruptions is critical in today's complex business environment. Corporate culture, strategy, and people are the fundamental building blocks to ensuring alignment across all levels of an organization, enabling a unified, systematic and effective approach when responding to supply disruptions. / by Alexander Randon Cope and Liqing Yuan. / M. Eng. in Logistics

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2013. / 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. 253-272). / This dissertation demonstrates how flexibility in hourly electricity operations can impact long-term planning and analysis for future power systems, particularly those with substantial variable renewables (e.g., wind) or strict carbon policies. Operational flexibility describes a power system's ability to respond to predictable and unexpected changes in generation or demand. Planning and policy models have traditionally not directly captured the technical operating constraints that determine operational flexibility. However, as demonstrated in this dissertation, this capability becomes increasingly important with the greater flexibility required by significant renewables (>=20%) and the decreased flexibility inherent in some low-carbon generation technologies. Incorporating flexibility can significantly change optimal generation and energy mixes, lower system costs, improve policy impact estimates, and enable system designs capable of meeting strict regulatory targets. Methodologically, this work presents a new clustered formulation that tractably combines a range of normally distinct power system models, from hourly unit-commitment operations to long-term generation planning. This formulation groups similar generators into clusters to reduce problem size, while still retaining the individual unit constraints required to accurately capture operating reserves and other flexibility drivers. In comparisons against traditional unit commitment formulations, errors were generally less than 1% while run times decreased by several orders of magnitude (e.g., 5000x). Extensive numeric simulations, using a realistic Texas-based power system show that ignoring flexibility can underestimate carbon emissions by 50% or result in significant load and wind shedding to meet environmental regulations. Contributions of this dissertation include: 1. Demonstrating that operational flexibility can have an important impact on power system planning, and describing when and how these impacts occur; 2. Demonstrating that a failure to account for operational flexibility can result in undesirable outcomes for both utility planners and policy analysts; and 3. Extending the state of the art for electric power system models by introducing a tractable method for incorporating unit commitment based operational flexibility at full 8760 hourly resolution directly into planning optimization. Together these results encourage and offer a new flexibility-aware approach for capacity planning and accompanying policy design that can enable cleaner, less expensive electric power systems for the future. / by Bryan S. Palmintier. / Ph.D.

Thesis (S.M. in Engineering Systems)--Massachusetts Institute of Technology, Engineering Systems Division, 2013. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 103-104). / As ocean shipments have increased alongside globalization, transit time uncertainty has increased as well. This problem was observed to have variable levels of impacts on logistics cost and safety stock levels. This thesis examines the effects of bimodality in transit time distributions -in particular, the cost of ignoring bimodality. One method common in practice is to completely ignore variability. On the other hand, a popular theoretical method to account for transit time variability is to assume that demand over transit time is normally distributed. Which is, in many cases, false. To display the incorrectness of such assumptions, the paper will compare the two approaches to empirical analysis on bimodal transit time distributions. / by Lita Das. / S.M.in Engineering Systems

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2004. / Includes bibliographical references (leaves 49-52). / When trying to envision what the future might look like, different methods of forecasting are often used. However, there is a growing consensus that discontinuity and abrupt change are inherent to the very nature of the future and should be incorporated into futurist studies. One such study is the MIT Center for Transportation and Logistics' Future of Supply Chain 2020 (SC2020). This paper reviews the future-studies method of Scenario Planning and evaluates its applicability to the SC2020 project. / by Yishai Boasson. / M.Eng.in Logistics