Abstract

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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