A bit of creativity on our poster for the Research Expo at MIT, 2016. **Created using Powtoons

1. Sneha Susan JacobAgnes Maina
THE BIG HUB THEORY!Student: Agnes Maina, MSCM 2016
Student: Sneha Susan Jacob, MSCM 2016
Advisor: Dr. David Gonsalvez
Sponsor: A Global Pharmaceutical Company
 Lead Time reduction and faster responsiveness to demand volatility
 Hub-and-spoke model was born from industry’s efforts to develop
more efficient networks. Benchmarking by the company has shown
that leading competitors have started developing a Hub.
Our Hub and Spoke Mental Model
 What is the impact of alternative operating policies and supply chain
parameters on the APAC hub supply chain performance?
 Develop an inventory control system to enable us infer the
operations of the secondary packaging hub
 A proposed hub system evaluated under various operating scenarios
by building a model of the product supply chain under analysis,
identifying key supply chain parameters and alternative operating
policies.
 A model and a tool that allows to simulate the expected output (stock
levels, write-off risks and service level) of alternative set of planning
parameters and policies.
 Apply the model to the pharmaceutical sector in general where there
is a set shelf life and set legal restrictions around the residual shelf
life.
 The overall lead-time must be reduced from the current 90 days for
all products and also reduce the review period for the temperature
controlled products; product MD, R and X so as to benefits from
lower costs at any given CSL.
 The hub needs to receive the product with an RSL of at least 10%
above the affiliate’s minimum acceptable RSL. This would aid reduce
chances of the products becoming obsolete or unqualified for
importation to the affiliates.
 Implementation of demand restriction on Safety Stock the low
volume products.
Methodology
The Problem
Motivation / Background
Key Question / Hypothesis
Relevant Literature
Results
Expected Contribution
 Current situation: Products are transported directly from the manufacturer to the
country where they are required.
 Implication: This in turn leads to long lead times which hinders the countries to
attend to urgent or unexpected demand.
January 2016 Poster Session
And a million other authors
Variables
Demand
Inventory
Policy
MOQ,
Safety
Stock
Lead
Time
8
10
12
14
16
18
20
22
24
26
28
30
89.5%
90.0%
90.5%
91.0%
91.5%
92.0%
92.5%
93.0%
93.5%
94.0%
94.5%
95.0%
95.5%
96.0%
96.5%
97.0%
97.5%
98.0%
98.5%
99.0%
99.5%
99.9%
Days
Cycle Service Level
Impact of Demand Restriction on Safety Stock (Days): Product MD
Demand Restricted at 1 σ Demand Restricted at 2 σ Unrestricted Demand