Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2004. / Includes bibliographical references (leaves 77-79). / One of the biggest challenges facing Original Equipment Manufacturers (OEMs) and Electronic Manufacturing Services (EMS) providers in the telecommunication networking industry is to predict the spending patterns of the telecommunication service providers due to uncertainties in the economy, intense competition, short product life cycle in the industry and many other factors. While studies over the years have focused on optimizing the expected profits by minimizing the risk of excess inventory, companies are also unwilling to forgo profits on unmet demand. This is especially so in a market that is worth well over $100 billion even during the economic downturn. Including the cost of damaged relationships and future market opportunities, the cost of lost sales can be very significant the increasingly competitive market. This thesis explores the use of real options to enable a telecommunication networking company to structure their supply chain so as to better exploit the upside opportunities / when actual customer demand significantly exceed forecasted demand and actual demand can only be confirmed when the delivery lead-time is less than the normal supply lead-time. The thesis sets forth a framework for developing real options analysis and evaluated three approaches against the current supply contract between the OEM and EMS provider. Recommendations that will allow the company to improve their profits in the event of surged demand were then made. The main finding of the thesis is that in times of increased demand, the real options approaches studied all generated higher value for the company than simply relying on demand forecasting. However, beside projected demand, companies considering using real options must consider a number of parameters time. The thesis sets forth a framework for developing real options analysis and evaluated three approaches against the current supply contract between the OEM and EMS provider. Recommendations that will allow the company to / (cont.) including the option price, strike price, cost of lost sales and salvage value of the product concerned. In the case of the company concerned in the study, it is recommended that they establish a safety stock option with their EMS provider. / improve their profits in the event of surged demand were then made. The main finding of the thesis is that in times of increased demand, the real options approaches studied all generated higher value for the company than simply relying on demand forecasting. However, beside projected demand, companies considering using real options must consider a number of parameters / by Ee Learn Tay. / M.Eng.in Logistics

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2015. / Cataloged from PDF version of thesis. / Includes bibliographical references (page 42). / Many firms introduce new distinct products more quickly than they remove old products, and some firms have also established larger distribution networks to increase service levels or support new markets. This research applies ordinary least-squares regression and a simulation approach to identify the relationship between increased complexity and inventory levels relative to demand for a major fast-moving consumer goods company. For this research complexity is defined as the number of SKUs in a brand and the number of stocking locations for an SKU. We find that while increased complexity does translate into increased demand variability, it does not correspond to higher inventory levels. While this research does not isolate the exact reason for this disconnect, it could relate to the degree to which inventory targets recommended by an optimization software are adhered to by planning staff. For similar companies which are navigating inventory cost and complexity pressures, the research implies that there may not be a direct relationship if the company does not strictly execute an inventory policy which bases safety stock levels on forecast error. / by and David Novoa Garnica. / M. Eng. in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2005. / Includes bibliographical references (leaves 81-83). / The banking industry is consolidating to streamline its operations through mergers and acquisitions, and is adopting new technologies to develop innovative products and services, thereby achieving both economies of scale and scope. Operational risk management has become a serious issue in the banking industry. Some reputed banks are either forced to close down their operations (eg., Citibank Private Bank in Japan) or faced cost overruns (eg., Barings Bank in England) due to poor operational risk management. In the supply chain industry, businesses are engaged in devising effective solutions using RFID technologies to locate and track the goods. We present the dynamics of banking industry in terms of operational risk management, innovation and business strategies. We also present the process mapping of RFID technology use in banking business areas to minimize operational risks. We further come-up with an effective operational risk management framework for banks to follow in improving their operational risk management. / by Harry Reddy. / 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. 107-116). / This dissertation focuses on how individuals involved in complex product development operate and interact with other people in the project and how they perceive and modify the product. Complex product development requires the collaboration of multiple individuals who are specialists in different disciplines. One of the challenges with the execution of design and development projects is coordinating the contributions of each individual to guarantee an aligned, seamless fit. I review a selection of the literature on team frameworks, coordination methods and empirical product development studies which address teams, individuals and product architectures and structures. I then conduct two studies. One focuses on individual to individual communication requirement stability and the other on individual interaction with product structure over the development period. In the first, I examine how the most important communication channels between individuals in multifunctional teams compare across thirteen different projects. In this study I found a direct correlation between functionally similar projects and their network of important communication links between individuals. This indicates that when faced with a problem of similar nature the profile of connections between individuals - which ones are more or less important - will also be similar. In the second, I study how individuals interact with the structure of a product in four software development projects. I found that most individual work is localized and consists of internal improvement work. When work is done that requires simultaneous modifications of several components, I found that the associations made between components does not follow the existing structural dependencies as indicated by the function calls between components. This behavior is consistent throughout the development of the projects and is not dependent on the design state of the product. The associations made between components are also not a good indicator of future structural dependencies. These observations do not follow the indications from previous work on team interactions and product structure, revealing that individuals make associations beyond those suggested by just the structural connections. It was also observed that individuals are able to identify and work on the most important components in a product and that work is conducted on components irrespective of their age in the system. Finally, a real-time observation of project execution method is proposed based on the several analysis steps developed within this thesis. The use of this method can be advantageous for practitioners to verify the progress of project and control deviations from plan. This thesis contributes directly to the stream of research of coordination in product development and contributes to the practice with new methods to help those involved in large-scale complex product development filter the extensive work done by many individuals and find areas of possible intervention. / by João Nuno Lopes Castro. / Ph.D.

Thesis (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division, 2006. / Includes bibliographical references (leaves 77-79). / Many real, complex networks have been shown to be scale-free. Scale-free in networks mean that their degree distribution is independent of the network size, have short path lengths and are highly clustered. We identify the qualities of scale-free networks, and discuss the mathematical derivations and numerically simulated outcomes of various deterministic scale-free models. Information Systems networks are a set of individual Information Systems that exchange meaningful data among themselves. However, for various reasons, they do not naturally grow in a scale-free manner. In this topic, we will specifically examine a technique proposed by MITRE that allows information to be exchanged in an efficient manner between Information System nodes. With this technique, we will show that a scale-free Information System Network is sound in theory and practice, state the characteristics of such networks and demonstrate how such a system can be constructed. / by Wee Hong Ang. / S.M.

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2008. / Includes bibliographical references (p. 404-417). / This thesis expands upon the understanding of the fundamentals of system architecting in order to more effectively apply this process to engineering systems. The universal concern about the system architecting process is that the needs and wants of the stakeholders are not being fully satisfied, primarily because too few design alternatives are created and ambiguity exists in the information required. At the same time, it is noted that nature offers a superb example of system architecting and therefore should be considered as a guide for the engineering of systems. Key features of nature's architecting processes include self-generation, diversity, emergence, least action (balance of kinetic and potential energy), system-of-systems organization, and selection for stability. Currently, no human-friendly method appears to exist that addresses the problems in the field of system architecture while at the same time emulating nature's processes. By adapting nature's self-generative approach, a systematic means is offered to more rigorously conduct system architecting and better satisfy stakeholders. After reviewing generative design methods, an algorithmic methodology is developed to generate a space of architectural solutions satisfying a given specification, local constraints, and physical laws. This approach combines a visually oriented human design interface (shape grammar) that provides an intuitive design language with a machine (cellular automata) to execute the system architecture's production set (algorithm). The manual output of the flexible shape grammar, the set of design rules, is transcribed into cellular automata neighborhoods as a sequenced production set that may include other simple programs (such as combinatoric instructions). / (cont.) The resulting catalog of system architectures can be unmanageably large, so selection criteria (e.g., stability, matching interfaces, least action) are defined by the architect to narrow the solution space for stakeholder review. The shape grammar-cellular automata algorithmic approach was demonstrated across several domains of study. This methodology improves on the design's clarification and the number of design alternatives produced, which should result in greater stakeholder satisfaction. Of additional significance, this approach has shown value both in the study of the system architecting process, leading to the proposal of normative principles for system architecture, and in the modeling of systems for better understanding. / by Thomas H. Speller, Jr. / Ph.D.

Thesis (Ph. D. in Transportation Systems and Policy Analysis)--Massachusetts Institute of Technology, Engineering Systems Division, 2004. / Includes bibliographical references (p. 119-123). / The ever-increasing demand for access to the world's major commercial airports combined with capacity constraints at many of these airports have led to increasing air traffic congestion. In particular, the scarcity of airside (take-off and landing) capacity at these airports has not been appropriately priced, leading to excessive demand as in the Tragedy of the Commons. Congestion pricing, as a classical economic approach to the efficient allocation of constrained transportation infrastructure capacity, has a long history of theoretical development. However, its application in the airport setting must deal with a set of important differences from the classical urban roadway setting. These differences have eluded the attention of researchers until very recently. They stem from the following set of complications: i) the peak and off-peak periods at congested airports are often less distinguishable than in the urban transport context; ii) airlines are a dominant intermediary between an airport's capacity and passengers as the end-users of that capacity; and iii) airlines operate groups of flights, as distinct from the atomistic behaviour of individual commuters. To address these complications, an analytical model is developed to explore the impact of congestion pricing at airports and understand potential airline responses under a range of assumptions about the market's structure. Through a set of numerical experiments, carried out with the help of a probabilistic queuing model, we compare the economic benefits resulting from adopting fine versus coarse congestion tolls for the cases of markets with symmetric and asymmetric carriers. Given sustained demand for access to an airport and reasonably elastic responses in terms of frequency adjustments, / (cont.) the benefits to carriers of instituting congestion pricing generally exceed the amount of tolls collected. While a system of fine or graduated tolls is suited for all airports, systems of coarse or uniform tolls, which can be implemented more easily, are applicable only at airports with fairly symmetric carriers that hold approximately equal frequency shares. In addition to congestion pricing, slot lease auctions can also be an effective means for promoting an economically efficient use of scarce airport capacity. In practice, the impact of slot lease auctions is similar to that of coarse tolling. Slot auctions are therefore applicable, in pure form, at airports with symmetric carriers. At these airports, a market-based demand management policy can comprise both congestion pricing and slot lease auctions. With respect to implementation, simultaneously ascending auctions recently used in the context of allocating electromagnetic spectra can be appropriately adopted to airports. A lump-sum subsidy can be used to promote specific socially desirable goals in the allocation of scarce airport capacity. Several airport authorities around the world, currently using purely administrative or hybrid forms of demand management, have developed sophisticated techniques for defining and managing their constrained airport capacity. Some of these techniques can be useful in developing market-based demand management policies. As an interesting case study, the experience of New York's LaGuardia Airport (LGA) ... / by Terence Ping-Ching Fan. / Ph.D.in Transportation Systems and Policy Analysis

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2011. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 139-141). / Companies that operate cold supply chains can greatly benefit from information availability and data generation. The abundance of information now available to cold chain operators and harvested from every echelon of the supply chain, ranging from the procurement process to the sales and customer service processes, provides an opportunity for logistics organizations to monitor and improve their operations. It is increasingly imperative to transform data into meaningful information that creates a competitive advantage for early adopters. This thesis attempts to determine how to make best use of and effectively interpret the information generated by trailer mounted temperature sensors and geospatial data collection devices during refrigerated transportation of packaged salads. The study covers only the transportation segment from the manufacturer's distribution center to the customer's (grocery retailer) distribution center. This thesis uses regression analysis in an effort to create a model that effectively uses realtime transportation information to identify the elements that can create a competitive advantage for cold chain operators. The main performance measurements subject to analysis in this thesis are reefer-unit fuel consumption and rejections of salad products at the customer's drop location. Regression yields a formula that can predict more than 70% reefer fuel consumption. However, with the independent variables available in the data at our disposal, it is not possible to build a model the effectively predicts product rejections. The findings of this thesis can help operators of transportation cold chains better manage fuel consumption by isolating and improving the independent variables we identified. / by Carlos Seminario and Emmanuel Marks. / M.Eng.in Logistics

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2007. / Includes bibliographical references (leaves 86-89). / Online purchasing is now popular following the growth of E-business. Retailers ordering online will get the exact delivery date of goods for their better management of sales operations. Suppliers should keep their competence at order promising to attract customers in the market filled with increasing competition. Generally Order Promising means that the supplier receiving an order should determine to accept the order or not. If accepted, then the supplier should determine the delivery date. Necessary data should be replied to the ordering customer. Optimizing Order Promising (OOP) is Order Promising (OP) that is optimized. This thesis probed into OP and OOP and summarized the characteristics and differences of the current OP software products on the basis of interviews and the investigation into the existing OP software suppliers - i2 Technologies, Oracle and SAP. Backed by the thorough analysis on a particular case study company, this thesis discusses the workflow and model of OOP by combining the author's own thoughts on improving existing OP workflows. A company can add many new functions to the OOP model designed in this thesis on the basis of the appropriate adjustments to the existing OP workflows and systems. / (cont.) For example, different customers can be managed in a classified way in accordance with historical sales; customer trust can be increased by the approach of Customer Allocation; every deal of the company can be guaranteed to be profitable; and no negligence to important customers will occur due to favoring unimportant customers. Moreover, in dealing with the disruptions that have frequently occurred these years, the thesis designed the order promising process dealing with emergencies for the manufacturers of public utilities, ensuring that a company will implement their social responsibility while harvesting profits. / by Zhipeng Li. / M.Eng.in Logistics

Thesis (Ph. D.)--Massachusetts Institute of Technology, Engineering Systems Division, 2005. / Includes bibliographical references (p. 278-289). / The main objective of this research is to identify robust technology and policy options which achieve substantial reductions in electricity demand in China's Shandong Province. This research utilizes a scenario-based approach to identify sensible and feasible energy efficiency and load reduction strategies. The research consists of technical analyses through the development of an hourly load simulation model to study the time and temperature sensitive impacts on electricity demand growth by different demand-side management (DSM) scenarios and a policy analysis to formulate policy priorities based on the socio-economic and environmental realities in China. This bottom-up comprehensive study helps inform decision-making given the technological, consumption and socio-economic conditions in large-scale electricity grid systems of Shandong and China, thus preferred DSM strategies are identified, and sensible policy recommendations are made with respect to Shandong province and China as a whole. This study developed a computer-based modeling tool for peak-load based electric demand analysis and long-term projections. / (cont.) The model simulates disaggregated hourly electric loads by end-user types with temperature-sensitive load simulation capability, which takes into account time use patterns, life-style and behavioral factors, distributed consumption behaviors of electricity users, appliances and equipment utilization patterns, environmental factors, and industrial structural and operational parameters. The simulation and scenario based research methodology provides a comparative basis, and dynamic insights to electricity demand in areas when limited generation and consumption information is available, which is especially appropriate for electricity sector studies in developing countries. The research showed that demand side management strategies could result in significant reduction in the peak loads as well as the total electricity consumption in Shandong. / (cont.) The results of the technical analysis concluded that (1) temperature sensitive load makes up the fastest growing demand within the entire consumption profile; (2) implementation of building energy efficiency strategies demonstrates the largest energy saving potential; (3) implementation of appliances standards, has limited effects on energy saving; (4) load management strategies to induce changes in consumption behaviors also shows great potential, however, they are difficult to estimate; and (5) urbanization policies also have a strong impact on electricity consumption. The recommended DSM policy priorities are based on the energy-saving potentials of the DSM strategies, which are listed in priority order: (1) improvement of building technology, (2) management of new installation first (3) management of temperature sensitive loads, (4) implementation of behavioral and load management strategies, (5) better management of urbanization policies (6) promotion of aggressive industrial motor substitution measures & industrial structural changes, and (6) improvement of appliance efficiency. / (cont.) This research also formulated integrated DSM policy recommendations to the Chinese government that are centered by the development of coordinated DSM policy framework, and that are based upon the current technological, managerial and institutional capacities of Chinese industry and governmental agencies. The details include moving away from the traditional utility centered IRP/DSM framework, developing a robust energy efficiency services industry, setting correct DSM priorities and implementing them, developing and upgrading the domestic energy efficiency product industry, and engaging end-user participation. The thesis recognized the barriers and difficulties in the policy implementation and stressed the importance of continuous adaptation and institutional learning in the implementation process. / by Chia-Chin Cheng. / Ph.D.