| Summary: | Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2012. === Cataloged from PDF version of thesis. === Includes bibliographical references (p. 76-77). === This thesis presents a model to determine safety stock considering the distinct planning parameters for a pharmaceutical company. Traditional parameters such as forecast accuracy, service level requirements and average lead-time are combined with a nontraditional upstream uncertainty parameter defined as supply reliability. In this instance, supply reliability measures uncertainty in the supply quantity delivered rather than variability in the lead-time for delivery. We consider the impact of the safety stock using two products: a proprietary product that is patented and a generic product that recently went off patent. Sensitivity analysis is performed to provide insights on the impact of variations in input parameters. The study shows that there is a significant difference in safety stock between the proposed model and the current model used by the company. === by Prashanth Krishnamurthy and Amit Prasad. === M.Eng.in Logistics
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