Stock level optimization at the distribution center through improved supply management practices

This thesis focuses on an inventory and supply management improvement project at Inditex, SA Corporation. Inditex has experienced a higher percentage increase in inventory than in sales over the past few years. As a fast-fashion power house and the largest fashion distributor in the world since August 2008, this trend goes directly against its corporate strategy and competitive advantage. The internship project addresses this trend by focusing on the deterioration in the company's supply management practices. The project developed an optimization model which minimizes total supply chain cost in order to define order points and quantities for a given reference whose demand and variability were also modeled. As a result of these efforts, theoretical inventory turns may be decreased, on average, by 19%. While these preliminary results are promising, organizational barriers to adoption must also be carefully addressed throughout the project's implementation period. To minimize these risks, a phased implementation approach is recommended which addresses both the technical and organizational hurdles and must be overcome before successful adoption of the tool across the company.

Department dc:contributor.department

Leaders for Manufacturing Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2009

Author dc:creator

• Vega González, Myraida Angélica

Advisor dc:contributor.advisor

• David Hardt and Jeremie Gallien.

• Sloan School of Management.
• Mechanical Engineering.
• 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/1721.1/50086

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/50086