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An optimization model using the Assignment Problem to manage the location of parts: Master Thesis at the engine assembly at Scania CV AB
Umeå University, Faculty of Science and Technology, Department of Mathematics and Mathematical Statistics.
Umeå University, Faculty of Science and Technology, Department of Mathematics and Mathematical Statistics.
2017 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

A key challenge for manufacturing companies is to store parts in an efficient way atthe lowest cost possible. As the demand of differentiated products increases, togetherwith the fact that old products are not phased out at the same pace, the need of usingstorage space as dynamically as possible becomes vital.Scania’s engine assembly manufactures engines for various automotive vehicles andmarine & industry applications. The variation in engine range in Scania’s offeringleads to the need of holding a vast, and increasing, assortment of parts in the produc-tion. As a consequence, this puts more pressure on the logistics and furnishing withinthe engine assembly.This master thesis aims to facilitate the process of assigning parts’ storage locationsin the most profitable manner through an optimization model, the Location Model, inExcel VBA. Together with the model, suggestions of work methods are presented.By implementing the Location Model at Scania’s engine assembly, 4,98 % of all keptparts are recommended location changes, while resulting in cost savings, for the chosen30-day period. These location changes result in a cost saving of 6,73 % of the totallogistic costs for the same time period.

Place, publisher, year, edition, pages
2017. , 29 p.
Keyword [en]
Inventory optimization; Integer programming; Generalized assignment problem; Combinatorial optimization; Greedy heuristic; Constructive algorithm
National Category
Mathematics
Identifiers
URN: urn:nbn:se:umu:diva-137825OAI: oai:DiVA.org:umu-137825DiVA: diva2:1127851
External cooperation
Scania CV AB
Educational program
Master of Science in Engineering and Management
Supervisors
Examiners
Available from: 2017-08-11 Created: 2017-07-19 Last updated: 2017-08-11Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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  • en-US
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Output format
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