Supply chain management addresses the management of materials and information across the entire chain from suppliers to producers, distributors, retailers, and customers. In the past few decades, scholars gave ample attention about the impact of inventory on Supply Chain Management (SCM). Roughly speaking, research on supply chain management has been mainly focused on three major issues. One is the behavior of information flow; the second issue deals with inventory management; the third issue is orientated to planning and operations management. In this paper the second issue, namely inventory management will be discussed. The author will follow the phases of classifying inventory; identify cost factors; assess cost components; calculate EOQ; giving suggestion and effect of inventory on supply chain will be discussed. The result is going to become clear under the analysis of two alternatives by using MCDM (Multiple Criteria Decision Making) method. The conclusion is when optimizing the inventory management, both up stream and down stream activities will run effectively.

Background: For many organizations, the transition from being a small business to a growing company demands great changes in the internal administration and processes. One area which often is neglected during this phase of rapid expansion is the processes for handling the planning and purchasing of components. Many young companies do not use systematic methods for managing the planning and purchasing of their inbound materials, instead they put their trust in managing the stock by intuition and prior experience. It’s therefore of interest to examine the possibilities of implementing more formal methods for controlling and planning the purchasing and stock keeping in growing companies. When placing orders, there are different methods for determining the lot sizes, where the Economic Order Quantity and Just In time methods are the two most commonly used. These theories were originally formulated to facilitate the purchasing and stock planning for grand companies during the 20th century. They’re based on the assumption that the company using them are able to order in any quantity desired, which not always is a possibility for small companies. This thesis will focus on investigating if there’s a possibility to use EOQ or JIT to improve the material purchasing and planning process for a small company, and if it’s possible to combine these methods for even further improvements. Purpose: Conduct an article segmentation and based on this examine the possibility to combine the EOQ and JIT methods for control of purchasing and inventory in order to lower these costs for a small company. Method: The thesis uses a deductive approach and is carried out in the form of a case study. The research strategy was mainly quantitative. The analysis was based on data gathered through interviews and from the company’s materials planning system. Conclusion: During the analysis it was discovered that an article classification considering individual purchasing values for each of the article groups, can outperform the more classical way of forming groups based only on percentage values. The other part of the analysis showed that there are currently economic incentives for the studied company to change the current way of material control to an customer order based method for article group A and B. But due to limitations in the company’s current supplier base and the high variance of demand it’s not currently recommended for the company to switch to the JIT approach when planning the material purchasing. The EOQ approach will lower the ordering costs and inventory holding costs for all segments, and combined lower the company’s total purchasing and inventory costs with 38,4%. As a result EOQ will in the current situation be the most efficient purchasing and material planning tool for all segments.

<p>Background: For many organizations, the transition from being a small business to a growing company demands great changes in the internal administration and processes. One area which often is neglected during this phase of rapid expansion is the processes for handling the planning and purchasing of components. Many young companies do not use systematic methods for managing the planning and purchasing of their inbound materials, instead they put their trust in managing the stock by intuition and prior experience.</p><p>It’s therefore of interest to examine the possibilities of implementing more formal methods for controlling and planning the purchasing and stock keeping in growing companies. When placing orders, there are different methods for determining the lot sizes, where the Economic Order Quantity and Just In time methods are the two most commonly used. These theories were originally formulated to facilitate the purchasing and stock planning for grand companies during the 20th century. They’re based on the assumption that the company using them are able to order in any quantity desired, which not always is a possibility for small companies. This thesis will focus on investigating if there’s a possibility to use EOQ or JIT to improve the material purchasing and planning process for a small company, and if it’s possible to combine these methods for even further improvements.</p><p>Purpose: Conduct an article segmentation and based on this examine the possibility to combine the EOQ and JIT methods for control of purchasing and inventory in order to lower these costs for a small company.</p><p>Method: The thesis uses a deductive approach and is carried out in the form of a case study. The research strategy was mainly quantitative. The analysis was based on data gathered through interviews and from the company’s materials planning system.</p><p>Conclusion: During the analysis it was discovered that an article classification considering individual purchasing values for each of the article groups, can outperform the more classical way of forming groups based only on percentage values. The other part of the analysis showed that there are currently economic incentives for the studied company to change the current way of material control to an customer order based method for article group A and B. But due to limitations in the company’s current supplier base and the high variance of demand it’s not currently recommended for the company to switch to the JIT approach when planning the material purchasing. The EOQ approach will lower the ordering costs and inventory holding costs for all segments, and combined lower the company’s total purchasing and inventory costs with 38,4%. As a result EOQ will in the current situation be the most efficient purchasing and material planning tool for all segments.</p>

<p>Supply chain management addresses the management of materials and</p><p>information across the entire chain from suppliers to producers,</p><p>distributors, retailers, and customers. In the past few decades, scholars</p><p>gave ample attention about the impact of inventory on Supply Chain</p><p>Management (SCM). Roughly speaking, research on supply chain management has</p><p>been mainly focused on three major issues. One is the behavior of</p><p>information flow; the second issue deals with inventory management; the</p><p>third issue is orientated to planning and operations management. In this</p><p>paper the second issue, namely inventory management will be discussed. The</p><p>author will follow the phases of classifying inventory; identify cost</p><p>factors; assess cost components; calculate EOQ; giving suggestion and</p><p>effect of inventory on supply chain will be discussed. The result is going</p><p>to become clear under the analysis of two alternatives by using MCDM</p><p>(Multiple Criteria Decision Making) method. The conclusion is when</p><p>optimizing the inventory management, both up stream and down stream</p><p>activities will run effectively.</p>

För att öka lönsamheten hos ett tillverkande företag är det viktigt att ha optimala tillverkningskvantiteter så att resurserna utnyttjas optimalt. Hur ett tillverkande företag utnyttjar produktionen påverkar effektiviteten i produktionssystemet, lagret och hos personalen. Syftet med denna studie är att hitta en metod för att optimera tillverkningskvantiteter så att kostnaden per produkt blir så låg som möjligt. I denna studie har vi använt oss av företagets distributör i Indien som ett exempel för hur en manuell produktion ser ut i dagslägen och jämför hur kostnaderna skulle se ut om denna produktion skulle ske maskinellt. Arbetet är en fallstudie där tillverkningskvantiteter analyseras. Både kvalitativ och kvantitativ forskning har bedrivits för att få en djupare förståelse av problemet. I arbetet ingår bland annat teorier som rör lager, partiformning och kostnader som rör tillverkning och orderhantering. Ett antal observationer och intervjuer har utförts för att för att få en djupare inblick i tillverkning och hantering av produkter hos företag. Empirisk data som nämns är beskrivningar av företagets produktionssystem och lager. Denna studie resulterar i att ”företag” bör använda partiformningsmetoden "Ekonomisk orderkvantitet" för optimering av tillverkningskvantiteter. Metoden går ut på att balansera ordersärkostnader och lagerhållningskostnader. Är dessa kostnader likvärdiga uppnås den mest kostnadseffektiva tillverkningskvantiteten. Studien har resulterat i en lathund där den mest optimala tillverkningskvantiteten presenteras beroende på produktefterfrågan per år. En analys av distributören Indiens order resulterar i att ”företag” bör producera ordrar likt Indiens beställningar maskinellt istället för omarbetning manuellt vilket sker i dagsläget. Redan vid en tillverkningskvantitet på 120 produkter är maskinell bearbetning mest kostnadseffektivt jämfört med en manuell ombearbetning.

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This report describes the major steps used in the Army’s LSS methodology, provides a brief overview of the Unaccompanied Personnel Housing and the Army Family Housing and briefly describes some of the initial steps intended to start improving the process. In the improvement phase, two detailed models (The EOQ Model and the Hadley and Whitin (Q,r) Model) used for inventory management are discussed. This report also provides a series of recommendations that include suggestions for baseline inventory levels, some ideas for future data collection, example improvements to some data input sheets as well as a few tasks for UPH and AFH managers to reduce cost and improve the overall efficiency of the system. / text

La presente monografía tiene como objetivo minimizar los costos totales de pedidos, proponer un sistema de inventario que permita saber cuánto y cuando pedir, esto será relevante para la nueva política de inventarios. Para ello se han aplicado modelos de inventarios que se ajuste a las condiciones de la empresa Aspersud, la misma que tiene un departamento de Operaciones y Mantenimiento al cual llamamos también departamento de O y M, que se encarga de conservar los institutos IRU y ILN funcionales y seguros, optimizando la vida útil de cada uno de sus componentes. En la actualidad O y M presenta una nueva política de reducción de costos. Adicionalmente, la presente Monografía tiene la finalidad de demostrar la importancia de que toda organización lucrativa o no, debe aplicar un sistema de inventarios que le permita tener un buen control, y tener la certeza de tomar buenas decisiones. No solo se enuncia el modelo matemático de inventario, además de hacer un análisis de la procedencia de dicha fórmula que permite minimizar mis costos de pedido y saber en qué momento se debe reabastecer.

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Background: An organization's ability to control bound material can be the difference between success or failure. Organizations that effectively work with supply chain management has strengthened their positions and increase their competitive edge on the global market. Organizations is the pharmaceutical industry has a major social responsibility by ensuring a continuous flow of medicines as well as pharmaceutical equipment. The industry is controlled by the strict regulations. The stringent security requirements for delivery reliability and delivery precision combined with extensive production regulations have resulted in these organizations having difficulty in maintaining even inventory levels.   Purpose: The study aims to investigating the correlation between high level of safety requirements in the pharmaceutical industry and high inventory levels with the help of a case study. The study wants to investigate consequences of such connection as well investigate potential solution in which organizations can reduce their inventory levels without jeopardizing the delivery precision and delivery safety of pharmaceutical organizations.   A case study has been conducted at the pharmaceutical company Fresenius Kabi who is a global market leader in the production of intravenous nutritional solutions.   Finding: Findings of the study indicates that safety requirements controlling the pharmaceutical industry have a major impact on the organization's production planning and storage. The consequences of the high security requirements results in in uneven production patterns and tied capital in high inventory levels. The consequences also indicated on a Bullwhip-effect. Lean management enables organizations in the pharmaceutical industry to establish even production patterns and reduce their inventory levels.   The study presents a new factor that prevents organizations in the pharmaceutical industry to reduce the number of articles. The new factor has a strong link to why organizations in the pharmaceutical industry have high inventory levels. / Bakgrund: Hantering av lager och uppbundet material kan vara avgörande för en organisations framgång eller misslyckande. En ökad globalisering av dagens marknad har lett till att organisationer som effektivt arbetar med supply chain management stärker sina positioner och ökar sina konkurrensfördelar. En bransch på den globala marknaden som verkar under håra regleringar är läkemedelsbranschen. Branchen har ett stort samhällsansvar genom att säkerställa ett kontinuerligt flöde av läkemedel samt läkemedelsutrustning. De hårda säkerhetskraven på leveranssäkerhet och leveransprecision i kombination med omfattande produktionsregleringar har resulterat i att dessa organisationer har svårt att upprätthålla jämna lagernivåer. Syfte: Med hjälp av en fallstudie vill studien undersöka hur sambandet mellan höga säkerhetskrav och höga lagernivåer inom läkemedelsbranschen ser ut. Studien vill undersöka hur sambandet påverkar organisationer inom läkemedelsbranschen samt analysera hur man medhjälp av olika åtgärder kan minska lagernivåer utan att äventyra organisationernas leveransprecision och leveranssäkerhet. Fallstudien är baserad på läkemedelsorganisationen Fresenius Kabi. Fresenius Kabi är en global aktör som är marknadsledande inom produktion av intravenösa näringslösningar. Studien har undersökt produkten smofkabvien som produceras i Uppsala i syfte till att besvara studiens frågeställning. Med hjälp av intervjuer och insamlad sekundärdata besvaras studiens syfte. Slutsats: Studienkonstaterar att säkerhetskraven som reglerar läkemedelsbranschen har en stor inverkan på organisationens produktionsplanering och lagerhållning. Resultatet av de höga säkerhetskraven resulterar i ojämna beställning-och produktionsmönster vilket resulterar i hög kapitalbindning samt indikerar på en potentiell Bullwhip-effekt inom försörjningskedjan. Med hjälp av Lean management, heijunka och just-in-time kan organisationer inom läkemedelsbranschen upprätta jämna produktion-och beställningsmönster samt reducera sina lagernivåer. Studien presenterar en ny faktor vilken förhindrar organisationer inom läkemedelsbranschen möjlighet att reducera antalet artiklar. Den nya faktorn har en stark koppling till varför organisationer inom läkemedelsbranschen höga lagernivåer.