This project explores how we can develop a Demand Signal Repository (DSR) to better predict demand. We devised a methodology, collected and cleansed the data, and built more than 240 models before we arrived at models that could improve forecast accuracy. The models explained 85%+ of weekly demand per customer...
This project uses a stochastic linear programming (LP) model to evaluate the capacity of the five United Nations Humanitarian Response Depots (UNHRDs) to respond to a single potential disaster: what expected percentage of people affected may receive emergency relief items and in what period of time? The model also recommends...
This project reviews the characteristics and uses of spot-market rate indexes in the US truckload transportation industry. It examines factors that influences rates and determines that multiple indexes of the spot market are required, each specified to a particular geography and range of tender lead times. Author: Andrew Bignell Advisor...
This project explores the dynamic between experts and users of complicated optimization models that are used in planning global supply chains. After conducting a comprehensive literature review on optimization modeling, communication methods, and data visualization, we surveyed a group of solver application users from our sponsor company to determine where...
This research project analyzes the current state of a typical Aerospace and Defense (A&D) support supply chain, and envisions a desired state with better integration. Finally the research proposes the +Add Model as an easy to understand and deploy roadmap to bridge the gap. The “+Add” Model stands for Aggregate...
This research examines key aspects of ethanol including its material characteristics, supply chain, and government legislation that affect its market demand and availability. In addition, it discusses the social and environmental impacts of the growing biofuel industry stemming from government mandates. The goal of the project was to investigate existing...
This project explores the benefits of establishing and operating Foreign Trade Zones (FTZs) and Bonded Warehouses (BWs) for luxury goods in North America, using the case of Ralph Lauren Corporation’s (RLC) distribution network. With over 3 million square feet of warehousing facilities in the U.S., the company wants to explore...
Through our study we have attempted to address the focal issue of sustainability for chemical supply chains. The meaning of the word sustainability itself is quite subjective and there is both uncertainty and ambiguity related to how this crucial parameter will impact future business decisions. Currently, there is a dearth...
A systematic approach including seven steps to build indicators for scenario monitoring was developed. Factor analysis was used to assign weights to individual indicators. And then individual indicators were aggregated linearly to build composite indicator. Next, the composite indicators were used to assess the changes in the driving forces so...
By using a Southeast Asian multi-purpose port as a case study, this project enhances the investment decision-making process for port infrastructure. Two existing methodologies are successfully applied and modified, leading to the development of both an investment tool and a framework for selecting an optimal investment strategy to address capacity...
In the agrochemical industry, balancing supply with extremely seasonal demand has been a struggle for most companies due to their capacity constraints. Stocking enough inventory ahead of the peak seasons and increasing the production capacity are two ways of resolving the issue. Our research examines an approach to achieve the...
For fresh produce, product freshness is very critical in satisfying customers and reducing obsolescent cost. While network nodes in a supply chain add more “touch” of inventories, they also reduce safety stock through a risk pooling effect. Our project studied relevant factors and created a predictive model to quantify the...
Outbound transportation collaboration is the act of cross-company consolidation of shipments originated from and destined to a common area. It can reduce transportation cost depending on the level of synergies that exist between companies’ supply chains. For companies who are interested in tackling collaboration on their own (DIY), this research...
This project determines appropriate inventory modeling approaches for externally sourced medical products. The authors identify the key drivers of inventory, highlight gaps in the current inventory modeling approach, and recommend inventory targets through the use of simulation or an appropriate safety stock formula. Authors: Nichole L. Hillstrom and Renato A...
This research project studies the global supply chain network flow of a low volume low margin industrial chemical product. It presents a network optimization model to minimize the total cost-to-serve (C2S). It also includes three scenarios to compare C2S when supply capacity shifts. Authors: Fred Dacha and Li Jin Advisor...
This project explores whether the readily available data in agriculture, published by various sources such as USDA, universities and weather stations, can be used in conjunction with the manufacturer’s private data to better forecast the demand of agricultural products (chemicals). We analyzed certain variables such as corn price, acres harvested...
Even though supply chain innovation (SCI) is a key component of corporate competitiveness, there is no commonly accepted definition of the concept. It is important to address this issue. The pace at which new ideas are introduced has increased markedly over recent decades, and companies cannot afford to be behind...
Supply Chain Frontiers issue #49 The tsunami that devastated parts of Japan in 2011 also wreaked havoc in many supply chains – including the one that supports the optical routing business of electronics manufacturer Cisco. Yet the company suffered negligible revenue losses as a result of the disaster. A case...
Supply Chain Frontiers issue #49 For many companies, supply chain innovation (SCI) is a key source of competitive advantage. Yet there is no clear, commonly accepted definition of the concept; one company’s SCI is another company’s process improvement. A forthcoming white paper from the MIT Center for Transportation & Logistics...
Supply Chain Frontiers issue #49 Staying ahead of the competition is much easier if the supply chain challenges that lie ahead are known. But it’s impossible to peer into the future, right? Not quite. Attendees at an MIT Center for Transportation & Logistics (MIT CTL) Executive Education course this June...
Supply Chain Frontiers issue #49 Dr. Edgar E. Blanco, Research Director of the Carbon Efficient Supply Chains Research Project at the MIT Center for Transportation & Logistics (MIT CTL), worked alongside three US companies – Boise, Caterpillar and Ocean Spray – on logistics initiatives that reduced their carbon footprint and...
Supply Chain Frontiers issue #49 The Malaysia Institute for Supply Chain Innovation (MISI) has published a white paper titled Financing SME Supply Chains. The research that forms the basis of the paper was supported by the SWIFT Institute, the Belgium-based organization that fosters research on global financial services. Small and...
Supply Chain Frontiers issue #49 A blog called Supply Chain @ MIT has been launched by the MIT Center for Transportation & Logistics (MIT CTL). The blog will cover a wide range of supply chain-related subjects including new research initiatives at the center, topical stories, and general insights into supply...
Supply Chain Frontiers issue #49 Horizontal collaboration in logistics – the sharing of transportation capacity to reduce both costs and carbon emissions levels – will be tested in a pilot project involving four companies in Aragón, Spain. The companies will share truck space to distribute their products. Initially the pilot...
Supply Chain Frontiers issue #49 The Malaysian Institute of Supply Chain Innovation (MISI) participated in the annual Company of the Year Competition organized by JA Worldwide. The 2013 competition took place in Kuala Lumpur, Malaysia, on February 25 to 27. Seventeen teams from the Asia Pacific region – Singapore, Indonesia...