Thesis/Capstone
Publication Date
Authored by
Juan Iocco
Advisor(s): Amanda Schmitt
Topic(s) Covered:
  • Demand Planning
  • Inventory
  • Manufacturing
  • Optimization
Abstract

This thesis examines a distribution multi-echelon production-inventory system subject to stochastic demand in the steel industry. The sponsor company, Ternium (a South American steel producer), needs to provide short service times under low inventory costs. The goal of this thesis is to generate a model and conclusions to determine where and how much inventory to hold to satisfy a required service level. Risk pooling is an important consideration for this problem; once a steel product advances in the production process, it has less possibilities of use for different customers. Since distribution stochastic multi-echelon inventory systems have no known optimal formulated solution, algorithms and simulation will be used determine a strategy.

Author: Juan Iocco
Advisor: Amanda Schmitt

Attachment(s)
Abstract
Executive Summary
Presentation