Date of Submission
Department of Systems and Industrial Engineering
Dr. Adeel Khalid
MDS Logistics is a middle-man that delivers and installs appliances to multi-family complexes and neighborhoods in Georgia. One of the biggest issues that they face in day-to-day operation is damaged and returned appliances. MDS’s longest standing contract is with GE and GE has extensive records of damage that is incurred by using similar companies across the country. We will be consulting with MDS while using the data produced by GE to compare MDS with the similar companies to see where improvement can be made reasonably.
When an appliance is damaged it is brought back to MDS’s warehouse where they are stored until GE allows them to return the products to distribution centers, which is about twice per year. With this, MDS is responsible for the product and is liable for the retail cost of the appliances. During the course of the year, there can be up to two thousand units sitting in their warehouse waiting to be returned.
Damages to appliances are incurred in a multitude of ways. These include manufacturer defects, mislabeled packages, concealed damage, botched installation, and mishandled appliances. Those that are completely out of MDS’s control are still counted against the company which results in a minimum number of damages.
If appliances are unable to be delivered, that often means that the jobsite is not ready for their installation. This results in the appliances having to be returned to MDS and scheduled for a later date. The increased handling leads to higher chances of damaged inventory.
OTP Consulting identified and evaluated possible changes to each area that MDS had the power to change to improve current processes.
The issues that were evaluated aimed to reduce damages incurred while units were in the warehouse, damages incurred while units were being moved to jobsite, and damages caused by repeatedly moving units to jobsites with unconfirmed point of contacts.
Montell, Chris; Moein, Darioush; and Samadabadi, Amir, "Reducing Damaged and Returned Inventory at MDS Logistics" (2018). Senior Design Project For Engineers. 8.