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Distribution network optimization in the uniform rental industry

Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2015. / Cataloged from PDF version of thesis. / Includes bibliographical references (pages 41-42). / Optimization models are a commonly used tool to identify cost efficient network flows. Complexity increases when various products move across different paths and transportation modes within one network. To address the challenges posed by this complexity, this thesis develops a mixed integer linear programming model for a uniform rental company. The company's product families are routed through intermediary distribution centers, while others bypass these points and move directly to a regional distribution center. Various simulations were run with the objective of minimizing fixed costs, warehousing, inventory and transportation expenses. The function was constrained by flow balance, demand and capacity constraints. The optimal solution proposed a network that used less facilities than currently operated within the company, and some in new locations due to transportation cost savings. As volume increased, the network structure continued to shift further from the company's current structure. Demand increased the influence of variable rates, while transportation lane rates were a significant factor in every version of the model run. / by Ann-Marie Chopyak and Haotian Lee. / M. Eng. in Logistics

Identiferoai:union.ndltd.org:MIT/oai:dspace.mit.edu:1721.1/100081
Date January 2015
CreatorsChopyak, Ann-Marie, Lee, Haotian
ContributorsBruce C. Arntzen., Massachusetts Institute of Technology. Engineering Systems Division., Massachusetts Institute of Technology. Engineering Systems Division.
PublisherMassachusetts Institute of Technology
Source SetsM.I.T. Theses and Dissertation
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Format43 pages, application/pdf
RightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission., http://dspace.mit.edu/handle/1721.1/7582

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