Title: Inventory management as prerequisite for an efficient warehousing managementstrategy during expansive growth Authors: Oskar Siggesson, Mattias Hedendahl, Anton Olsson & Max Sandstedt Examinator: Hana HulthénTutor: Petra Andersson Background: The company is in a period of strong growth and is suffering from growingpains. The company is moving to a new location with a larger storage space in 2024 butsomething has to be done before the move. Because of high storage levels there is a lack offree storage space and the warehouse is soon reaching its breaking point. Objective: The report investigates how a change in warehousing strategies can helpMicropower cope with the growth in production until 2024. A forecast is created for thefuture need for storage space on a selection of products in a portion of the warehouse. Methods: This study is a case study of Micropower Group. The study uses secondary data inthe form of quantitative data from the company's business system, but to some extent also theauthor’s own observations. The data is used to perform an ABC/XYZ-analysis on thecompany's incoming inventory that forms the basis for segmentation of the articles. The studyalso conducts a sensitivity analysis of the company's storage space needs. Conclusions: By segmenting articles based on the ABC/XYZ-analysis, appropriateinstruments can be presented for the company's articles. The analysis forms a framework forMicropower's inventory management strategy but also for companies in similar situations.Based on the segmentation, information about the article's characteristics and appropriateinstruments. The study's sensitivity analysis of the forecast for storage space requirementsgives the company an indication of what increase in inventory turnover rate is required tomanage production growth. The study finds that in order to manage production growth therewill need to be an equally large increase in inventory turnover rate. Key words: ABC/XYZ-analysis, item management, inventory management strategy,differentiation, classification, forecast, sensitivity analysis, storage space

En metod som används för lagerstyrning, och som fått ökat intresse inom forskningen de senaste åren, är klassificering med multipla kriterier (MCABC). Däremot har forskningen hittills tenderat att koncentrera sig på utveckling av klassificeringsmodeller snarare än på vägledning för tillämpning av modellerna. Studien påvisade med en litteraturstudie att forskningsområdet klassificering med multipla kriterier hade en begränsad mängd vägledning för tillämpning relativt mängden klassificeringsmodeller som utformats. Därför undersökte studien en modifierad lagerstyrningsstrategi. Syftet med studien var att finna produkter som lämpar sig för lagring av produktionskapacitet och att undersöka effekterna på färdigvarulagret om dessa produkter används för lageruppbyggnad inför säsongen. För att finna sådana produkter utformades en klassificeringsmodell med multipla kriterier, GTS-modellen (Good to Store). Modellen testades genom att ett antal scenarier simulerades på ett urval av produkter av det egentillverkade sortimentet i en fabrik. Detta gjordes i en fallstudie av ett företag inom processindustrin vars sortiment har säsongsvariationer. Resultatet av simuleringarna visade att lageruppbyggnad med GTS-modellen inför säsongen innebar att det genomsnittliga lagervärdet och antalet omställningar för det egentillverkade sortimentet minskade med ungefär 14 % vardera, jämfört med nuläget. Samtidigt kunde servicenivån bibehållas på i princip identisk nivå. Görs motsvarande jämförelse enbart på den simulerade delen av sortimentet blir minskningarna ungefär 35 % vardera. / Multi criteria classification (MCABC) is a method used for inventory management which has gained interest in research in recent years. However, research has tended to focus on the development of classification models rather than guidance on the application of the models. This study demonstrated, using a literature review, that the multi criteria classification field had a limited amount of guidance for application compared to the amount of classification models that were developed. Therefore, this study examined a modified inventory management strategy. The purpose of the study was to find products suitable for storing production capacity and to examine the effects on the finished goods inventory if these products are used for stock build-up prior to the season. A multi criteria classification model, the GTS (Good to Store) model, was developed to find such products. The model was tested by simulating several scenarios on a selection of products from the factory-made range. This was conducted in a case study regarding a company in the process industry whose range has seasonal variations. The simulations showed that stock build-up with the GTS model prior to the season resulted in an approximately 14 % decrease in average inventory value and number of setups for the factory-made range, compared to the current situation. At the same time, the service level was almost completely maintained. If the comparison is made exclusively on the simulated part of the assortment, the decrease will be approximately 35 %.