Sweet Dreams Delivered Right: Hubs vs. Hybrid Network

Authors:
Drake Turnquist, Sophie Hsu
MIT Supply Chain Management Program

52



Summary:
Rising inventory costs and lower inventory turnover due to long lead times and supply/demand volatility have led to a need for our sponsor company, Tempur Sealy International, to reassess their inventory and deployment strategy. Our project aims to develop an optimization model capable of analyzing various network configurations, including direct-to-distribution center, Hub & Spoke, and hybrid models, to define the ideal supply chain network. The model provides Tempur Sealy with actionable insights, optimizing inventory levels, network flow paths, and supplier sourcing decisions to balance cost and service.


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