Using an analytical framework this research project establishes that initiatives to improve responsiveness contribute to growth in sales. The framework uses an econometric model and a causal model to verify and explain relationships between measures of responsiveness and sales. The research also identifies measures that drive sales and measures driven...
This project measured the costs associated with inventory shrinkage and stock-outs in the Washington State tree fruit industry using multivariate regression and optimization techniques. The author provides four qualitative solutions in the form of inventory management policies, and one quantitative solution in the form of a mixed-integer linear program. Author...
This project compares planned truckload procurement to executed truckload procurement using shipment transactions from 2006 to 2008. The research suggests that matching between the two occurs in less than 10% of the lanes and overspending occurs in more than 50% lanes. This research proposes strategies to reduce truckload procurement to...
This project uses a linear program to examine the effectiveness of using transportation relays for private fleets. A transportation relay is a shipment that is divided into two legs. The linear programming model is run for a large retailer that we name LargeRetailerCo. The results for LargeRetailerCo show significant quantifiable...
Supply Chain Frontiers issue #31. Read all articles in this issue. The cost of fuel is a major driver of supply chain efficiency, and the increasing volatility of fuel prices can undermine performance if not managed properly. Research at the MIT Center for Transportation & Logistics’ (MIT CTL) FreightLab has...
Supply Chain Frontiers issue #30. Read all articles in this issue. Supply chain is adjusting to the extreme turbulence that has become the new norm in most markets, but how is it evolving to meet these challenges in a post-recession world? Perhaps towards a role as shock absorber, one that...
Supply Chain Frontiers Issue #28. Read all articles in this issue Supply chain talent is in short supply, particularly in areas such as planning and strategic management, according to Dr. Chris Caplice, Executive Director of the MIT Center for Transportation & Logistics (MIT CTL). Caplice participated in a recent webinar...
Supply Chain Frontiers Issue #27. Read all articles in this issue In these difficult economic times there is no shortage of issues to occupy supply chain managers, but two in particular, rising fuel costs and a dramatic decline in truck carrying capacity, figured largely in the MIT Center for Transportation...
This project utilizes data mining techniques to determine the drivers of stock-out performance. Best performing and worst performing clusters of stores were identified using data clustering techniques. Logistic regression and multiple ordinary-least-squares regression were then used to gain further insights and quantify the drivers of stock-outs. Author: Khalid Usman Advisor...
This study reviewed and established a framework for selection of distribution strategies. In addition, this project analyzed advantages and disadvantages of utilizing different distribution strategies. Through case analysis, the study evaluated the benefits and costs of applying distribution center model for the seed industry, and addressed demand lags issue by...
This study developed a three stage procedure for the design of network flow and placement of safety stock in a multi-echelon supply chain shared by a large consumer goods manufacturer and a prominent retailer. The procedure provides a way to optimize the supply chain, reducing the logistics cost while achieving...
This thesis examines the relationship between centralization in the supply chain organization of companies, cost structure, and the factors prompting companies to either centralize or decentralize their supply chain organization. Author: Guruprakash Rangavittal and Tae-Hee Sohn Advisor: Chris Caplice
This research presents a case study of a distribution center in a fast food restaurant supply chain where the replenishment policy is “Never Run Out.” Supply chain costs and configurations at the distribution center are analyzed, and alternative supply chain strategies are suggested. These results are incorporated into a total...
This project developed a model to quantify the impact of business policy decisions, such as tender lead time, on truckload transportation costs. This model demonstrated that business policies have a substantial impact on companies’ overall transportation spend and these policies can be quickly modified to reduce cost with little risk...
Supply Chain Frontiers Issue #26. Read all articles in this issue Soaring fuel costs have put freight transportation in the spotlight, but even before the current furor over rising oil prices the challenges of moving shipments through congested networks represented a major issue for supply chain managers. The MIT Center...
Supply Chain Frontiers Issue #25. Read all articles in this issue To get a sense of how far the supply chain profession has come in recent years, look no further than its educational programs. When MIT-CTL’s Master of Engineering in Logistics (MLOG) program was launched 10 years ago it set...
Supply Chain Frontiers issue #23. Read all articles in this issue Governments must be able to respond to disasters both natural and man-made, but what about their responsibilities during the economic recovery phase of calamities when freight and transportation systems could be crippled? New research carried out by the MIT...
All organizations - public and private – are affected by unplanned emergencies and disruptions. Recent examples including the 9/11 terrorist attacks, the Nisqually Earthquake (2001), Hurricane Katrina (2005), Seattle’s Wind Storm (2006) and Minneapolis’ 35W bridge collapse (August 2007) have raised the need for organizations to prepare for these events...
Supply Chain Frontiers issue #23. Read all articles in this issue MIT-CTL Director Yossi Sheffi has been appointed Director of the Engineering Systems Division (ESD) at MIT, a position that will allow him to play a more strategic role in the development of MIT research and education. Sheffi will also...
Supply Chain Frontiers issue #22. Read all articles in this issue Memo to Tim Cook, Chief Operating Officer of consumer electronics company Apple: if you are looking for an additional sales channel for your notebook products, put specialty electronics retailers at the top of your list. That is the main...
Supply Chain Frontiers issue #22. Read all articles in this issue The United States Transportation Command (USTRANSCOM), which provides air, land and sea transportation for the Department of Defense, and MIT’s Center for Transportation & Logistics (CTL), have joined forces to create a fellowship program that will generate military leaders...
Supply Chain Frontiers issue #21. Read all articles in this issue Domestic auto suppliers in Japan sustained damage from the 6.8-magnitude earthquake that hit the country this July, causing shut downs at major manufacturers such as Toyota and Honda, because the supply of key components was interrupted. The manufacturers’ just-in-time...
A wide variety of electronic marketplace formats are used in the Truckload (TL) transportation industry, including combinatorial auctions, private and public exchanges, and electronic catalogs. Combinatorial multi-attribute auctions are commonly used strategically to populate electronic catalogs, commonly called “routing guides,” with pricing, assignments, and priority logic. Private and public exchanges...
Supply Chain Frontiers issue #21. Read all articles in this issue The 2007 Master of Engineering in Logistics (MLOG) Research Journal is now available. The seven papers in the Journal were selected from the theses submitted by the MLOG Class of 2007 at MIT. The articles, written as executive summaries...
