Optimizing Apparel Pack Sizes Across Retailer’s North America Network

Athletic apparel companies outsource apparel manufacturing to many factories that pack in varied sizes and quantities. Packaging is a critical, early step in retailers’ supply chains. Pack quantities impact downstream supply chain costs. Optimizing the relationship between pack quantities and downstream costs allows retailers to reduce unnecessary repackaging within their local distribution centers. This research created a discrete optimization model aimed to minimize distribution center costs as a function of pack sizes. As sales orders trend lower due to an increase in e-commerce sales, the optimization model suggested decreasing pack sizes to accommodate these trends and decrease the variation in pack sizes across product classifications. Immediate implementation would result in a 13.2% reduction in repackaging costs. After implementation, communication with customers to match sales orders to pack sizes would result in a 39.2% reduction in repackaging costs.

Name thesis:degree_name

Master

Department dc:contributor.department

Sloan School of Management

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2023

Author dc:creator

• Teno, Jason

Advisors dc:contributor.advisor

• Welsch, Roy E.
• Wu, Cathy

Statement dc:rights

• In Copyright - Educational Use Permitted
• Copyright retained by author(s)

Licence dc:rights.uri

• https://rightsstatements.org/page/InC-EDU/1.0/

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/154180

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/154180