Cost evaluations do not always include the costs associated with risks when organizations make strategic sourcing decisions. This research was conducted to establish and quantify the impact of risks and risk-related costs on sourcing decisions for the automotive industry. The focus is on comparing distant, global suppliers entailing long supply...
This thesis presents a road map for companies to follow as they manage multi-tiered suppliers in the high-tech industry. Our research covered a host of sources including interviews and publications from various companies, consulting companies, software companies, the computer industry, trade associations, and analyst firms among others. While our review...
We propose a carrier performance measurement framework for a specialty chemical manufacturer to assess and compare the performance of various carriers in a dynamic fashion. Author: Weixia Cheng Advisor: Mahender Singh
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 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...
Many supply chain management decisions continue to be made as though driving with the rear-view mirror. This project offers a set of metrics that provide supply chain managers with a forward-looking approach to predict supply chain future performance and align their strategy with performance outcomes. Author: Linda Haydamous Advisor: Larry...
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 thesis developed a multi-attribute model to help the World Food Programme in the optimization of warehouse location in the Somali region of Ethiopia. The methodology used uses the Analytic Hierarchy Process which facilitates the use of qualitative information for optimization purposes. The model can be scaled in order to...
Supply chain management (SCM) has traditionally played an operational role within cement companies missing opportunities for cost reduction and value creation. These missed opportunities can be realized by introducing the strategic use of SCM as explained in this article. Author: Isabel Agudelo Advisor: Edgar Blanco
Articles Include: Bringing Contractors to the S&OP Table Contractor collaboration at Eli Lilly Dealing With the Bankruptcy Threat Surviving supplier bankruptcy scares Financial Health Checks for Your Supply Chain Brush up on your financial skills How Do You Keep IT Projects on Track? Know Thyself IT projects that look within...
This research quantifies transportation mode choice, demonstrating the trade-off between truckload(TL) and intermodal (IM, truck and rail) transportation. The authors used a mathematical model to calculate the logistics costs as a sum of transportation and inventory holding cost and analyzed how supply chain costs are sensitive to transportation cost components...
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...
Using results from 51 million Monte Carlo simulation runs, we demonstrate that wind plant-plus-energy storage (WP+ES) operation becomes more profitable by applying supply chain management techniques such as network design and inventory management. Our business case shows that emerging, utility-scale battery storage can be economically-viable even today under certain scenarios...
Dr. Jonathan L.S. Byrnes, MIT Senior Lecturer and President of Jonathan Byrnes & Company, foresees a dramatic change the way supply chains will be financed in the not too distant future.
In difficult times, the first gut reaction of businesses is to drastically cut costs and inventories. Supply chain managers are charged with executing the cuts, and in getting totally consumed with this awesome responsibility they often lose sight of other goals. However, as an advocate of supply chain’s critical role...
CTL Supply Chain 2020 (SC2020) Project is a multi-year research effort to identify and analyze the factors that are critical to the success of future supply chains. This pioneering project will map out the process innovations that will underpin successful supply chains as far into the future as the year...
Supply Chain Frontiers issue #32. Read all articles in this issue. When it comes to stimulating economic growth, the key to future expansion can sometimes be found in the past. Earlier this decade, the government of Aragón in northern Spain realized that its economy had become too reliant on a...
Supply Chain Frontiers issue #32. Read all articles in this issue. Dr. Bruce C. Arntzen has joined the MIT Center for Transportation & Logistics (MIT CTL) as a senior research director with special responsibility for developing the ground-breaking MIT Global SCALE Network. An MIT graduate, he brings over 20 years...
Supply Chain Frontiers issue #32. Read all articles in this issue. There is no such thing as a free lunch, except, perhaps, when it comes to counting inventory. Research being carried out by David Opolon, MIT Center for Transportation & Logistics (MIT CTL) PhD candidate, shows that a consistent inventory...
Supply Chain Frontiers issue #32. Read all articles in this issue. Brightstar Corporation started life as a trading company in the mobile phone business, and has since grown rapidly into a full service supply chain organization for wireless network operators and retailers. Company founder and CEO Marcelo Claure recently traced...
Supply Chain Frontiers issue #32. Read all articles in this issue. The difficult economic climate did not deter more than 200 people from attending the Leaders of the Value Chain conference in Bogota, Colombia, May 6, 2009, organized by supply chain research and education company LOGyCA and the Center for...
Articles Include: How Three Companies Are Using Supply Chain to Combat the Recession Recession as a guide to better supply chains New Routes to Resilience Three strategies for the upturn Face [To] Face: SCS Q&A Overcoming India’s Planning Challenges Supply chain risk in India Delivering a Safer Food Supply Chain...
Kevin Smith, President & CEO of Sustainable Supply Chain Consulting discusses why he believes that the crisis has been overblown and what he thinks the likely outcome will be, and how you can help your company effectively prepare for the coming economic recovery.
