Inventory reduction : applying a pull ordering system to a distribution business

This thesis is a description of an internship project at an aerospace parts distribution company. The goal of the project was to reduce inventory by applying a pull ordering system to the distributor's value chain. The thesis provides background on the theory of "push" vs. "pull" systems, and a discussion of how pull systems can reduce inventory while maintaining or improving service level. Typically, pull systems are applied to situations of relatively frequent and constant demand. Using a model developed for the internship company, we demonstrate that a two-bin kanban refill system can be applied to reduce inventory by 50-60%, even given a situation of volatile demand. We describe the pilot project (currently in progress) intended to prove out the kanban system's performance, including the team composition, implementation plan, and perceived barriers to implementation. In conclusion, we reflect on the project's results and present suggestions for future improvement.

Department dc:contributor.department

Leaders for Manufacturing Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2004

Author dc:creator

• Chesborough, Amber J. (Amber June), 1977-

Advisor dc:contributor.advisor

• Charles Fine and Daniel Whitney.

• Mechanical Engineering.
• Sloan School of Management.
• Leaders for Manufacturing 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/1721.1/34792

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/34792