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http://ssrn.com/abstract=1210842
 
 

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Implementing Supply Routing Optimization in a Make-to-Order Manufacturing Network


John Foreman


Massachusetts Institute of Technology (MIT) - Operations Research Center

Jérémie Gallien


London Business School

Julie Alspaugh


Dell Computers

Fernando Lopez


Dell Computers

Rohit Bhatnagar


Nanyang Technological University

Chee Chong Teo


Nanyang Technological University (NTU)

Charles Dubois


École Nationale Supérieure des Mines de Paris

July 25, 2008

MIT Sloan Research Paper No. 4708-08

Abstract:     
Dell's supply chain for desktops involves Asian vendors shipping components by sea to several U.S. plants. While suppliers are responsible for shipping enough inventory, Dell can re-route and expedite their shipments while in transit and also transfer on-hand inventory in order to balance supply across sites. This paper describes the development, implementation and impact of the process and optimization-based control system now used by Dell to address this supply routing challenge for its US-bound monitors. This new methodology is estimated to have reduced Dell's inventory re-positioning costs for monitors by about 60%.

Number of Pages in PDF File: 42

Keywords: Dell, supply chain, make-to-order manufacturing

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Date posted: August 7, 2008  

Suggested Citation

Foreman, John and Gallien, Jérémie and Alspaugh, Julie and Lopez, Fernando and Bhatnagar, Rohit and Teo, Chee Chong and Dubois, Charles, Implementing Supply Routing Optimization in a Make-to-Order Manufacturing Network (July 25, 2008). MIT Sloan Research Paper No. 4708-08. Available at SSRN: http://ssrn.com/abstract=1210842 or http://dx.doi.org/10.2139/ssrn.1210842

Contact Information

John Foreman (Contact Author)
Massachusetts Institute of Technology (MIT) - Operations Research Center ( email )
77 Massachusetts Avenue
Bldg. E 40-149
Cambridge, MA 02139
United States
Jérémie Gallien
London Business School ( email )
Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom
HOME PAGE: http://faculty.london.edu/jgallien/
Julie Alspaugh
Dell Computers ( email )
United States
Fernando Lopez
Dell Computers ( email )
United States
Rohit Bhatnagar
Nanyang Technological University ( email )
S3 B2A 21 Nanyang Avenue
Singapore 639798
Singapore
65-67906235 (Phone)
Chee Chong Teo
Nanyang Technological University (NTU) ( email )
N1 01-A09 Nanyang Avenue
Singapore 639798
Singapore
Charles Dubois
École Nationale Supérieure des Mines de Paris ( email )
60, boulevard Saint Michel
75272 Paris cedex 06, 75006
France
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