Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Manufacturing Program at MIT, 2008. / Includes bibliographical references (p. 79-80). / This paper introduces multiple methods to set and optimize inventory levels. These methods are then classified based on the complexity involved to implement them. As an organization develops a deeper understanding of inventory, it becomes more mature and can apply more complex methods. This sequencing of methods is defined as a three phase maturity model. First, a foundational level of maturity is defined, which quantifies inventory levels based on future demand and business requirements. Second, a transitional level of maturity defines safety stock positioning in a single-echelon supply chain. Finally, the maturity model concludes with an optimal level of maturity that is based on principles of multi-echelon inventory optimization: safety stock at multiple positions of a supply chain. The setting for this paper was the Aerospace industry. Honeywell Aerospace is in the middle of a 3-year effort to re-engineer Sales, Inventory and Operations Planning (SIOP) systems. At the same time, Honeywell Aerospace is standardizing on a uniform implementation of an ERP system. Through SIOP, standard inventory and planning practices aided by the uniform ERP backbone and a strategic inventory program executive management hopes to reduce what is seen as a disproportionate contribution of inventory to Honeywell International. / by Joseph Mauro. / S.M. / M.B.A.
| Identifer | oai:union.ndltd.org:MIT/oai:dspace.mit.edu:1721.1/44295 |
| Date | January 2008 |
| Creators | Mauro, Joseph (Joseph Peter) |
| Contributors | David Simchi-Levi and Donald B. Rosenfield., Leaders for Manufacturing Program., Leaders for Manufacturing Program at MIT, Massachusetts Institute of Technology. Engineering Systems Division, Sloan School of Management |
| Publisher | Massachusetts Institute of Technology |
| Source Sets | M.I.T. Theses and Dissertation |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 80 p., application/pdf |
| Rights | M.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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