MIT SEMINAR SERIES IN MANUFACTURING AND PRODUCTIVITY
Place: Room 33-116 Time: 12:00 P.M. Tuesday, December 4th, 2007
Sloan School of Management, MIT
In this talk I will provide an overview of two ongoing research projects related to the modeling and optimization of supply chains.
Prior research has developed models and algorithms for the placement of safety stocks in a supply chain. This prior work did not account for the information content from the availability of a demand forecast, nor did it permit capacity constraints. Our current research examines how to address these shortcomings.
A key challenge for any new product is to determine the right level and type of capacity investments across the supply chain. In this research we consider a supply chain for which each product can require several process or supply capabilities and each resource provides capacity for one or more processes or supplies. We develop a multi-period model to determine the capacity investments for these processes in the presence of demand uncertainty and contracts with different cost structure and duration.