Management of a high mix production system with interdependent demands : finished goods requirements and raw materials control

A product line, characterized by high level of customization, diversification and demand correlation between different finished goods products, requires increased efficiency and effectiveness. The product line, along with the intrinsic correlation, is modeled; the customer expectation is also analyzed. Based on these analyses, two inventory control frameworks are proposed: a fixed service level policy for the raw materials and an optimized policy for the finished goods. The optimal policy is validated using simulation. The proposed policies reduce the inventory value on hand for finished goods and raw materials by 35% and 30%, respectively, while at the same time optimizing the service levels.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Mechanical Engineering.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2009

Author dc:creator

• Palano, Diego

Advisor dc:contributor.advisor

• Stanley B. Gershwin.

• Mechanical Engineering.

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/1721.1/55227

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/55227