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Inventory Optimization of a Business Unit
Örebro University, Örebro University School of Business.
Örebro University, Örebro University School of Business.
2013 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Inventory Optimization, Inventory Management, Business Unit, Consolidation of Stocking Points, Consolidation of Products, Economic Order Quantity, and Batch Size.

The Business Unit has high inventory of finished steel balls used in the manufacturing of high precision bearings to the aero industry. The high inventory of steel balls is caused by high minimum order quantity, a high variety of finished steel balls, many decentralized stocking points, and lack of a cohesive planning system.

To describe and generate an understanding of what inventory of steel balls there is in the Business Unit, where it is located, what it consists of, and to give a recommendation on how to decrease the inventory of the entire business unit.

The thesis is of a case study design where interview material gathered from key factory participants of the Business Unit is converged with quantitative data to find what inventory to keep and where to keep it within the business unit.

The result show that the overall inventory of the Business Unit will be decreased through: consolidation to semi-finished inventory at the manufacturer, implementation of a cohesive planning system, and through sending actual required batches through removal of the imposed minimum order quantity.

Place, publisher, year, edition, pages
2013.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:oru:diva-29543ISRN: ORU-HHS/FEK-AS-2013/0047--SEOAI: oai:DiVA.org:oru-29543DiVA, id: diva2:628337
Subject / course
Företagsekonomi
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2013-07-02 Created: 2013-06-13 Last updated: 2017-10-17Bibliographically approved

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