Inventory optimization in high volume aerospace supply chains

The supply chains of aerospace products can be complex, involving thousands of components per product and hundreds of vendors spaced out over an increasingly global landscape. Managing all inputs necessary for these complex aerospace supply chains is a task that is critical to the success of any firm and requires extensive planning, close partnerships, and detailed analysis. This thesis outlines a system for optimal safety stock management in high volume aerospace supply chains. Given such supply chain parameters as component inventory values, procurement and manufacturing lead times, demand distributions, and bills of material, the ideal safety stock locations and sizes which result in minimal overall inventory levels are calculated by a nonlinear optimization program. With this safety stock structure, aerospace firms can operate their supply chains with higher customer service rates and lower inventory levels. A methodology is also developed to help aerospace companies improve their existing supply chains as efficiently as possible. Considering the limited time and resources available, a company may not be able to enhance all areas of its operations and determining where to improve with the greatest effect on customer service levels and inventory can be difficult. The framework developed provides general guidelines to ensure improvement resources are being deployed most efficiently. Finally, business environment and operations considerations are discussed to aid companies in the process of implementing supply chain improvements and instituting organizational change.

Department dc:contributor.department

Leaders for Global Operations Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2011

Author dc:creator

• Masse, Brian Robert

Advisor dc:contributor.advisor

• David Simchi-Levi and Roy E. Welsch.

• Sloan School of Management.
• Engineering Systems Division.
• Leaders for Global Operations Program.

Statement dc: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.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/66057

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/66057