Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2010. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 83-84). / Perishability presents a challenging problem in inventory management for the fresh produce industry since it can lead to higher inventory costs and lower service levels. If a supply chain has multiple echelons, that further complicates the issue since companies have an added risk of not having the right amount of product at the right location at the right time. We conduct our research on Chiquita's Fresh Express supply chain. We analyze the impact of perishability on total relevant costs. Our research focuses on determining the optimal inventory policy for the system considering inventory holding costs, shrinkage costs, lost sales costs, forecast accuracy and service levels. We test the sensitivity of the system with respect to forecast errors and the transportation lead time. We developed a discrete-event simulation model using Arena software to conduct the research. Our research demonstrates that by lowering the current target on-hand inventory levels at the distribution center and retail stores, inventory holding costs and shrinkage costs are reduced significantly. Under the optimal inventory policy, the system can save 31% in costs, improve the item fill rate at the distribution center, reduce the total shrinkage volume, and maintain high service levels of more than 95% at the retail stores. Our sensitivity analysis shows that the system is very sensitive to the forecast errors. Additionally, we recommend keeping the transportation lead time as low as possible to maximize the products' lifetime at the retail stores. Reducing the forecast errors or the transportation lead time would reduce the total relevant cost of the system while improving the item fill rates across the supply chain. / by Yogeshwar D. Suryawanshi and Thomas Hsien. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2010. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 82-86). / The Panamanian government is executing an aggressive economic growth initiative to transform the country into a regional logistics hub, like Singapore or Dubai. Two elements of the initiative are expansion of the Panama Canal and development of the Panama Pacifico Project, a large logistics park. The government initiative is analyzed with respect to the logistics hubs in Singapore and Dubai by 1) identifying a structure of critical factors for developing a logistics cluster, 2) using this structure to analyze the feasibility of Panama becoming a major logistics hub, and 3) exploring the impact of a logistics_hub in Panama on the Latin American network of ports. We make recommendations so that Panama can speedily develop its logistics hub, and so that Latin American ports whose existence is threatened by this development can adapt. / by Daniel Muñoz and Myriam Liliana Rivera. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2008. / Includes bibliographical references (leaves 132-133). / This thesis examines the tradeoffs between carbon footprint, cost, time and risk across three case studies of United States' perishable or consumer packaged goods firms and their transportation partners. Building upon previous research, and utilizing an Institute of Management and Administration (IOMA) and MIT Center for Transportation and Logistics (CTL) survey of supply chain professionals, the goal of this thesis is to better understand the decision process and motivations of our case study companies with regard to carbon footprint and implications for transport mode and network architecture, and the tradeoffs involved in making these decisions. We examine: (1) An expedited refrigerated rail service providing coast-to-coast shipment of produce for a major retailer, in lieu of its prior trucking arrangement; (2) A dairy producer which with the help of its trucking partner switched from less-than-truckload (LTL) to full truckload (FTL) and currently explore the possibility to re-organize its distribution network; and (3) A bottled water firm which created an additional container shipping route to reduce the volume of water it ships via truck. Comparisons and contrasts are made between case study firms. Findings from these case studies are used to make forward-looking recommendations for companies interested in altering transport mode and/or network architecture as a means of reducing the carbon footprint of their operations. / by Nelly Andrieu and Lee Weiss. / M.Eng.in Logistics

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2010. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 251-259). / Across technology industries and particularly at the cutting edge of biotechnology a debate is under way about the proper balance between open and closed - between co-developing products with shared information and open standards, versus using more traditional, closed, proprietary processes. Beyond the relative success of open source software to date, it is not clear how and whether open design processes might be applied generally for complex, assembled technologies. This problem takes on special urgency within the domain of synthetic biology, an emerging discipline in which many practitioners advocate opening design and development through platforms such as the registry of standardized biological parts. Biotechnology is IP intensive in part because commercialization is complicated and capital intensive. How might one develop a sustainable open development process in this context? This thesis addresses these questions from an Engineering Systems perspective. Defining open, collaborative system development (OCSD) specifically as a process in which subsystems are created voluntarily by an unrestricted set of third-party contributors, it makes the following claim: An OCSD process can itself be designed, with the principal objective of creating an environment for third-party innovation. To support this claim the thesis outlines a conceptual framework to guide OCSD design. The framework includes a taxonomy of parameters and constraints relevant to opening design, a list of options within each taxonomic category, and three high level strategies found to recur as a function of sponsor goals and technological constraints. Finally, the thesis proposes a quantitative method, based on multidisciplinary modeling and pareto analysis, to design open standards within the context of one of the three strategies. The research is carried out through a pragmatic blend of case studies and quantitative modeling. First, an in-depth, multi-discipline literature review synthesizes relevant taxonomic categories. Thirteen examples of OCSD spanning nine industries are then analyzed to define options within each taxonomic category. The case studies are also used to identify strategies for opening design based on correlations between OCSD options. The framework is validated and expanded through an in-depth case study of the opening of Very Large Scale Integration (VLSI) in the semi-conductor industry in the late 1970s. Finally, a quantitative method is developed to guide the design of open standards within one of the three strategies. These three contributions - the framework, correlated strategies, and quantitative method - are then applied to a particular biotechnology called microbial fuel cells. / by Matthew Robin Silver. / Ph.D.

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2010. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 244-250). / A variety of events inside a firm and in its environment can motivate managers to rethink their supply chain strategy. However, the evaluation and reformulation of a firm's supply chain strategy is not a trivial problem, and has no clear answer in the literature. Part of the difficulty stems from the 'elusiveness' of strategy, but additionally supply chain strategies are often left tacit, which makes their discussion more difficult. In this thesis we develop a better understanding of supply chain strategy and of the strategic imperative it is expected to support. We also present a methodology we developed, tested and refined to capture, evaluate and reformulate the supply chain strategy of a firm. For this, make extensive use of two research methodologies: grounded theory and action research. Working with a pool of 20 secondary case studies, we employ grounded theory to develop a better understanding of how the strategic imperative is articulated and communicated to the functions. Working on one particularly rich case study, we then develop a better understanding of supply chain strategy, and of how it serves as bridge between the operations in the field with the strategic imperative. This understanding was later tested and refined through two action research projects. Based on the literature, and adapting some principles from tested methodologies in other fields, we devise a methodology to capture, evaluate and reformulate the supply chain strategy of a firm. Our proposed methodology was tested and refined during our two action research projects . Our data sources during these projects included 68 interviews, eleven panel discussions, and six online questionnaires. The resulting methodology to capture, evaluate and reformulate a supply chain strategy is presented in this thesis, divided into three distinct yet interdependent phases. The first phase, 'capture', proposes steps to reveal and conceptualize a firm's supply chain strategy to render it explicit and tractable as a conceptual system. The output of the first phase, the 'Functional Strategy Map,' will serve as platform or the next two phases. The second phase, 'evaluation', assesses the merits and flaws of the firm's supply chain strategy in its current form along three dimensions: alignment, coverage and sufficiency. Central to our alignment evaluation is a tool we call 'evaluation matrices', which we compare to other matrix-form tools used in related fields, including the 'design structure matrix' (DSM) and the 'techniques-tools matrix'. The third phase, 'reformulation', proposes a novel approach to reformulate the supply chain strategy. This approach is built upon the principles of controlled convergence, yet operates using an original structure and a set of rules, amenable to the problem of supply chain strategy reformulation, devised to promote alignment, coverage and sufficiency. Every step of every phase is presented in full detail, and illustrated using examples from actual deployments, to facilitate the replication of this methodology by managers and by other researchers. The results and limitations of the methodology are discussed, and suggestions for further research are provided. Although the thesis is focused on supply chain strategy, we anticipate the methodology we have proposed should be, for the most part, applicable to other sets of interrelated functional strategies. / by Roberto Joaquin Perez-Franco. / Ph.D.

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2015. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 70-71). / The procurement and sourcing group of OG company was tasked to systematically forecast, design and develop the future state of the company's next generation supply base. The main objective is to anticipate the preferred locations to source commodities such as machine parts from in the near future. In response to that objective, the purpose of this thesis is to identify the relevant group decision drivers that consist of political, economic, social, technological, environmental, legal and business internal factors that the procurement and sourcing group are evaluating. These drivers were then utilized to develop a tool that is able to quantify, balance and combine the specified drivers so as to determine the overall alignment to the company's procurement and sourcing strategy. This tool also seeks to predict the near-term global competitiveness of oilfield services equipment manufacturing by country. Through on-site interviews, literature review, public data collection and statistical analysis, we were able to identify and specify top drivers that were most relevant to the decisionmaking process of managers in procurement and sourcing group for an oil & gas company. Based on the specified drivers, our analysis identified the top ranked countries using a hierarchical analytical process which was then used to validate the company's current sourcing strategy. Building on this analysis, we propose a framework that determines OG company's next generation supply base. The framework proposed can serve as an organizational development approach and decision-making tool which is useful in uncovering the underlying motivations of the procurement and sourcing managers. The tool also provides qualitative recommendations through a quantitative stepwise approach. The methodology of identifying and quantifying drivers as described in our thesis is especially relevant to industrial manufacturing companies with a global manufacturing footprint. We conclude with the limitations of the framework and potential avenues for future research. / by Wenzheng Chong and Yuwen Lai. / M. Eng. in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2005. / Includes bibliographical references (leaves 63-66). / This thesis looks at how supply chains in the automotive industry operate from the perspective of the manufacturers. The study includes the industry structure, the top players in the industry, factors that drive the industry, and supply chain challenges for companies in the industry. It was found that consideration to the just-in-time production system takes precedence in business decisions, and the build-to-order model still needs work in terms of lead time reductions. The thesis includes a case study of General Motors and how key business processes support one of their supply chains.. / by Niklas Braese. / M.Eng.in Logistics

Includes bibliographical references (leaves 66-67). / Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2008. / This research applies data mining techniques to give a picture of the interaction of performance variables such as between stock-outs and store attributes, and stock-outs and other variables including store sales, income and demographic data, as well as various aspects of inventory management data. This research uses three data mining techniques: multiple ordinary-least-squares (OLS) regression, logistic regression and data clustering. The first part of the research evaluates how the effect of stock-outs at the distribution center (DC) level impacts the downstream sales at the store-level. Using multiple regression techniques, it was observed that stock-outs at the distribution center level have a detrimental impact on the sales at the retail store level. The second part of the project focuses on understanding the relationships of store stock-out performance to various drivers. The variables that were determined to be drivers of store performance include income level of the area, demographic profile, years the store has been in operation, day of the week delivery from distribution center, distance of store from the distribution center and average inventory-on-hand. Using data clustering techniques, worse performing and good performing clusters of stores were identified. The two worse performing clusters were 'Low-Income, Newer' stores and 'Newer, Further from DC' stores. The three good performing clusters were 'High-Income, High-Inventory' stores, 'Closer to DC, Older' Stores and 'High-Income, Smaller' stores. / by Khalid Usman. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. / Includes bibliographical references (leaves 43-45). / In recent years, the price of oil has driven large fluctuations in the price of diesel fuel, which is an important cost component in freight logistics. This thesis explores the impact of fuel price volatility on supply chains by examining the sensitivity of decisions under various scenarios. Specifically, we analyze the transportation mode choice decision between truckload and intermodal (truck combined with rail) transportation using a model to calculate the total relevant cost, consisting of transportation cost and inventory holding cost. We use input from the North American operations for a global retail company regarding annual demand, product characteristics, load size, lead time, transportation rates, fuel surcharges, inventory policies and holding cost to perform sensitivity analysis of the mode choice decision to fuel price and the value density of the product. For several origin-destination pairs we identify the diesel price at which intermodal offers lower total cost than truckload as well as the magnitude of savings that can be achieved by switching modes. We then generalize the insights from this case by providing an equation to calculate the fuel price for this mode choice tradeoff. / by Eun Hie Kim [and] Michael Nsiah-Gyimah. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009 [first author]; and, (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009 [second author]. / Includes bibliographical references (leaves 69-70). / As the public health system in Burundi transitions from a mode of emergency humanitarian response to a sustainable operation, there is a significant opportunity to reduce costs by eliminating the duplication of functions served by multiple parties. Numerous multi-lateral agencies and NGOs play a significant role in the public health supply chain. Additionally, Burundi has several vertical programs focused on specific communicable diseases such as HIV/AIDS, malaria and tuberculosis, which have parallel distribution systems. This thesis assesses the costs of multiplicity in the public health supply chain in Burundi, focusing on identifying the factors contributing to multiplicity and evaluating their cost impacts. We specifically analyze the transportation and inventory costs under four different distribution scenarios in the context of a proposed health sector structural reform while using the current system as a baseline. The analysis also discusses several other relevant factors that affect the costs of multiplicity. The research suggests that the Ministry of Health in Burundi can reduce costs, and improve availability of drugs by shifting from a pickup mode to a delivery mode of distribution, sharing assets between the central procurement agency and vertical programs, and improving the cash flow in the system. / by Jeet N. Shah & Trevor N. Thomas. / M.Eng.in Logistics