Supply Chain / Logistics / Material Flow

Shipping truck

Industrial engineers design and analyze the flow of goods and services in order to optimize overall supply chain performance.


Ron McGarveySuchi RajendranSharan SrinivasJim Noble

  • Optimizing Forecasting and Inventory Policies in a Make-to-Order Production Environment

Jim Noble and Ron McGarvey

  • Integrated Inventory Segmentation Strategies for Management of Service Parts

Jim Noble

  • Relation-based Item Slotting with Space Constraints
  • Integrated Material Flow Analysis

Omid Shahvari

  • Sustainable Design of an On-demand Supply Chain Network

Sharan Srinivas

  • Improving Inbound Logistics Operations to Reduce CO2 Emissions


Slide 29

Optimizing Forecasting and Inventory Policies in a Make-to-Order Production Environment

Slide 30

Integrated Inventory Segmentation and Optimization for Fill Rate Service Parts

Problem Motivation

Fill-rate based inventory optimization models typically short high-dollar critical parts necessary for sustaining fleet operations. Need to determine how to segment consumables and repairable service parts to achieve satisfactory fleet service targets while minimizing inventory investment.

Important/Expected Results

  • A prototype inventory segmentation model that creates purposeful groupings of parts and optimizes within each group to form a balanced and satisfactory solution.
  • Supply chain simulation analysis to compare performance across multiple programs.
  • A financial business case to justify segmentation techniques over current methods.
Slide 32

Relation-based Item Slotting with Space Constraints

Problem Motivation

  • Correlation between items based on order history should be considered to make order picking more efficient.
  • Replenishment scenarios based on demand prediction can be generated to provide more flexibility for slotting items.

Important Results

  • Algorithm developed works better than previous popularity index.
  • Total picking cost is reduced on average by 25% .
  • Total replenishment cost is reduced on average by 41%.
Slide 31

Integrated Material Flow Analysis

Business and project objectives

  • Analyze current state-of-the-art material flow models.
  • Analyze the current material flow/inventory situation.
  • Develop a set of material flow improvement alternatives.
  • Evaluate the material flow improvement alternatives with respect to the trade-offs between performance and cost.

Important Results

Estimated annual transportation, material handling and space savings of $2.8M over 3 years

Slide 33

Sustainable Design of an On-demand Supply Chain Network

Research objectives

  • Quantify the impact of product Layer Thickness on product quality and to the overall supply chain network -> Optimal Layer Thickness
  • Determine Long-term Investment Decisions (e.g., facility construction, capacity selection decisions)
  • Determine Short-term Operational Decisions (e.g., procurement, transportation, storage, production, postprocessing decisions)

Important Results

  • Impact of layer thickness on production and post-processing cost
  • Impact of customer demand variability on AM supply chain network design decisions
  • Impact of the safety stock level on the storage and transportation cost
  • Impact of raw material wastage rate on the procurement and transportation cost
Slide 34

Improving Inbound Logistics Operations to reduce CO2 Emissions

Project Objectives and Approach

  • Motivated by real-life case of multinational consumer goods company
  • Objectives are to minimize the detention fee paid to 3PL and reduce emission of CO2 into the atmosphere.
  • Integrated simulation and DMAIC framework to understand current process and evaluate improvement opportunities

Important Results

  • Proposed single attribute dispatching rule achieves over 55% cost savings and 7% reduction in CO2 emission
  • Proposed multi-attribute dispatching rule achieves over 33% cost savings and 20% reduction in CO2 emission

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