This study is to discuss the retailer¡¦s order quantity decisions in a situation of two- echelon channel. When the upper manufacturer or wholesaler provides or does not provide the return policy, how the downstream retailer does the best strategy to respond to¡HDoes the return policy influence the retailer¡¦s will of order merchandise¡HAnd how does the risk attitudes of the retailer influence his order quantity decision¡H Different form the papers before, we use the method of maximum utility to find the best solution. We also refer to the model developed by Lau & Lau (1999), and conduct a model for the retailers who are different risk attitude to make strategic decisions after simplified and modified it. First, the manufacturer quotes for the wholesale price of merchandise and the buyback price of returned merchandise. After considering this information of the quotation of prices, then the retailer can do the order quantity decision in accordance with his own risk attitude. Because there are few paper talk about how the risk attitudes influence pricing¡Border decision and return policy, we hope this paper can become a useful reference material and more and more related researches will been issued in the future to provide suggestion for business .

Practical inventory settings often include multiple generations of the same product on hand. New products often arrive before old stock is exhausted, but most inventory models do not account for this. Such a setting gives rise to the possibility of inter-generational substitution between products. We study a retailer that stocks two product generations and we show that from a cost perspective the retailer is better off stocking only one generation. We proceed with a profit scheme and develop a price-setting profit maximization model, proving that in one and two generation profit models there exists a unique solution. We use the profit model to show that there are cases where it is more profitable to stock two generations. We discuss utility and preference extensions to the profit model and present the general n-product case.

Inventory management is today seen as more competitive oriented, process oriented and better integrated into the companies than before. But still do several companies run their inventories according a traditional approach. There is therefore a need for some companies to evaluate their inventory management and adapt the new view. There is also a need to adjust for increased focus on sustainability, previous research calls for strategies and tools that include sustainable parameters without lowering the profitability. The purpose with this study is to assess inventory management principles and purchasing routines related to the acquisition of packaging material in a process industry. The study aims to develop a framework for decision makers in inventory management. This framework will be the basis for a support tool incorporating a relatively simple and easy-to-use user interface. This master thesis is performed as a case study research and uses several data collection methods, such as a literature review, observations, and interviews. The findings from the data collection is used to evaluate which impact inventory management has on a company’s profitability, and which basic parameters that could be included in the support tool. The empirical findings show that Barilla Sweden’s current inventory management match the traditional approach, but also that they strive to become more competitive and process oriented in their management of inventories. There is however some constraints in their working strategy that prevents them from taking the next step. Comparison between Barilla Sweden’s current order size and an economical order quantity (EOQ) and just-in-time (JIT) approach is made. The comparison shows that Barilla Sweden has money to save and warehouse space to release with changed order quantities. Adapting a new inventory management approach require review of uncertainties, such as delivery accuracy and forecast changes. It is also necessary to evaluate supplier relations and internal working strategies. The effect of these parameters on inventory management can be noticed in the support tool. The tool compares total costs, average stock, tied capital, and environmental and social consequences between the EOQ model and JIT. The support tool visualizes drawbacks and benefits with different order sizes and has an easy-to-use interface.

Practical inventory settings often include multiple generations of the same product on hand. New products often arrive before old stock is exhausted, but most inventory models do not account for this. Such a setting gives rise to the possibility of inter-generational substitution between products. We study a retailer that stocks two product generations and we show that from a cost perspective the retailer is better off stocking only one generation. We proceed with a profit scheme and develop a price-setting profit maximization model, proving that in one and two generation profit models there exists a unique solution. We use the profit model to show that there are cases where it is more profitable to stock two generations. We discuss utility and preference extensions to the profit model and present the general n-product case.

Material supply systems have for a long time been regarded as an important function with strong potential to increase the performance of companies in different industries. Consequently, substantial research has been conducted in the field. However, in the pharmaceutical industry within research and development plants, material supply systems have historically not been a prioritized function. Therefore, there is a research gap regarding material supply systems in that peculiar context. This study aims to fill that gap by investigating how a material supply system could be designed and which factors are critical to achieve a cost-efficient service level within a research and development plant in the pharmaceutical industry. To do so, a single case study has been conducted at a Swedish pharmaceutical company’s research and development plant. An abductive approach has been applied to both test if the general design principles developed in other industries and business functions can be applied to this context. Further, context specific factors affecting the material supply system design needed to be identified and investigated to adapt the general design principles to the specific context by generalizing data. The empirical data was collected by utilizing focus groups, interviews, observations and documents. The findings yielded that there is a substantial potential for improvement of material supply systems within the context of this study. The existing decentralized inventory structure at the case company was a particularly vital aspect that hindered the system from operating cost-efficiently in relation to the service level and a centralization is crucial to improve. Further, calibration and a general decrease of safety stocks, order points and order quantities is essential to uphold a consistent service level at a justifiable cost at the case company. The general design principles and formulas retrieved from the theoretical framework was partly applicable in the context of this study but needed some adjustments. Especially the low volume articles with high variety in consumption rate was not suitable to be managed by the existing methods and needed another approach. Further, the context establishes high requirements on system dynamics, it comes with boundaries due to laws regulating the industry, and companies in the context generally need to be better at aligning their design factors to the purpose. The result of this study adds valuable content to the research field and fills the gap for material supply systems in the context of research and development plants in the pharmaceutical industry. Further studies are needed in this field to investigate how articles with low and varying demands can be managed within material supply systems cost-efficiently and with high service levels.

This thesis is called "Stock Management in the Store". The main aim of the thesis is to determine the optimal size and composition of inventory assortment in the store. The thesis consists of two parts - theoretic and practic one. The first part was focused on stock management in the business unit. The selected store was characterized in the practical part. Subsequently, was selected five specific samples of goods selected assortment categories - meat products, dairy products, pasta and drinks. On these groups of products was accomplished optimization. This optimization was accomplished by analysis of selected products, Economic Order Quantity and Direct Product Profilitability.

The subject of this thesis is to propose a new inventory management system, that was found in particular company as one of the biggest shortages, which the company currently faces. The first part of thesis contains theoretical background focused on inventory management, expecially on function and types of supplies, ordering systems of supplies and on methods of their inventory. The second part focuses on the analysis of the current state in company processes. Following the theoretical part, there were suggested appropriate inventory management systems to simplify the work in warehousing and logistic, but also to bring economic benefits to the whole company. In addition to these proposals were included also possible solutions of less problematic processes.

Bakgrund: För företag som håller lager är en viktig faktor för att lyckas öka effektiviteten att arbeta med lagerstyrning. Lagerstyrning handlar om planering och kontroll av lagret för att kunna serva kunderna och produktionen. Inom lagerstyrning är det viktigt att företag fattar beslut gällande vilken orderkvantitet som ska beställas samt när ordern ska läggas för att finnas tillgänglig på lagret vid rätt tidpunkt. Företag kan använda sig av säkerhetslager vid styrning av sitt lager för att försäkra sig om att de kan hantera osäkerheter i efterfrågan och produktion. Syfte: Syftet med studien är att utifrån analys av lagerstyrningsteori utforma en teoretisk lagerstyrningsmodell för att skapa förståelse för hur lageromsättningshastigheten kan öka. Vidare ska den framtagna modellen empiriskt appliceras på Sandviks produktionsavdelning i Svedalas aktuella artiklar för att identifiera möjliga förbättringar. Metod: Studien har genomförts som en fallstudie på Sandviks produktionsavdelning i Svedala baserat på en teoretisk framtagen lagerstyrningsmodell. Teoriinsamlingen till utformandet av den teoretiska lagerstyrningsmodellen har inhämtats via facklitteratur och vetenskapliga artiklar. Empiriinsamlingen har gjorts med hjälp av intervjuer och numerisk data. Både teori och empiri har sedan analyserats utifrån ett kvalitativt tillvägagångssätt. Avslutande kommentarer: Den framtagna teoretiska lagerstyrningsmodellen börjar med att presentera kriterier som påverkar lageromsättningshastigheten, sedan presenteras steg för att genomföra en ABC-klassificering och slutligen presenteras olika lagerstyrningsmetoder för att bestämma hur orderläggningen ska ske samt hur stortivsäkerhetslagret ska vara. Den teoretiska lagerstyrningsmodellen är pedagogisk och tydlig för att skapa förståelse hos företag om hur de kan öka sin lageromsättningshastighet. Lagerstyrningen som formades utifrån den teoretiska lagerstyrningsmodellen för Sandviks produktionsavdelning i Svedala bestod av orderläggningsmetoderna lot-for-lot, uppskattad orderkvantitet och täcktidplanering samt säkerhetslager baserat på manuella bedömningar och baserat på ledtidsförbrukningen. Med hjälp av denna lagerstyrning ska de proaktivt undvika föråldrat och långsamtgående lager i framtiden. / Background: In order to increase the efficiency for companies that keep inventory, they need to work with inventory control. Inventory control regards planning and control of the inventory to increase customer and production service. Within inventory control, it is important that companies make decisions regarding the quantity to be ordered and when the order will be added to be available in the warehouse at the right time. Companies can use safety stock to ensure that they can deal with uncertainties in demand and production. Purpose: The purpose of this study is, based on analysis of inventory control theory, to design a theoretical model of inventory control to create an understanding for how the inventory turnover may increase. Furthermore, the theoretical model will be empirically applied to Sandvik's production department of Svedala's current articles to indicate improvements. Method: The study has been made as a case study at Sandvik´s production department in Svedala, based on a developed theoretical model of inventory control. Theory collection to the design of the theoretical model of inventory control has been obtained through professional literature and scientific articles. Empirical data has been collected through interviews and numerical data. Both theory and empirical data have been analyzed from a qualitative approach. Concluding remarks: The designed theoretical model of inventory includes criteria that affect inventory turnover, the steps to implement an ABC classification and various inventory control methods to determine how the placement of orders should be implemented and the amount of safety stock that should be held. The theoretical model vi of inventory control is pedagogical and clear to create an understanding regarding how companies can increase their inventory turnover. The inventory control that was formed for Sandvik´s production department in Svedala, on the basis of the theoretical model of inventory control, consisted of the ordering methods, lot-for-lot, estimated order quantity and cover-time planning. The methods for safety stock were safety stock based on manual assessments and on lead time consumptions. With this control Sandvik´s production department in Svedala, proactively can avoid obsolete and slow moving inventory in the future

Spare parts are, for many companies, a complex product to logistically handle. This is in part due to the varying characteristics and sporadic demand patterns of spare parts. Obstacles can often arise when companies utilize the same approach to their spare parts stock as they do with their general warehouse manufacturing inventory. By using the same approach, companies risk neglecting the widespread variation of the spare parts. With the help of established routines, a clear set of guidelines and factors, the chances of a successful handling of spare parts inventory is increased. The study is a qualitative case study with the purpose of identifying specific factors and to make recommendations of models for companies to take into account when evaluating and storing spare parts. Through unstructured/semi-structured interviews conducted with four case company employees, information was gathered which was used to assist in identifying these specific factors and models for companies. A theoretical frame of reference was produced through analyzing research articles and was compared to the compiled empirical data in an analysis. The departments within the case study based their work on single factor which were considered important for each specific department, without inter-departmental communication. The factors that were identified in the study include service, competitive advantage, tied up capital, size capacity, complexity, sales frequency and material. Four of these were considered to be a priority for the case company. The study showed that different models for spare parts management and outsourcing could be implemented in the case company. By integrating the different models for spare parts management and outsourcing, combined with communication, a new model has been proposed for handling the spare parts storage. / Reservdelar är för många företag en komplex produkt att hantera utifrån dess varierande egenskaper och sporadiska efterfrågemönster. Problematiken härstammar ofta från att många företag hanterar reservdelslager utifrån samma förutsättningar som dess allmänna lagerhantering, därigenom försummas reservdelarnas olika egenskaper. Förutbestämda riktlinjer och faktorer krävs vid hantering av reservdelar och en viktig komponent för att lyckas med detta är kommunikation. Arbetet är en kvalitativ fallstudie med syftet att ta fram faktorer och rekommendationer av modeller att ta hänsyn till vid värdering och lagerhantering av reservdelar. För att besvara syftet och frågeställningarna utfördes ostrukturerade/semistrukturerade intervjuer med fyra medarbetare på fallföretaget. En teoretisk referensram togs fram genom litteratursökningar som sedan ställdes i en jämförelse mot den sammanställda empirin i en analys. Studien visade att de olika avdelningarna på fallföretaget främst utgått från en enda faktor som ansetts vara viktig för den specifika avdelningen. Utifrån de framtagna faktorerna i studien; service, konkurrensfördel, kapitalbindning, fyllnadsgrad, komplexitet, försäljningsfrekvens och material, ansågs fyra av dessa vara av prioritet för fallföretaget. Studien visade att olika modeller för reservdelshantering och outsourcing skulle kunna implementeras på fallföretaget. Genom att integrera de olika modellerna för reservdelshantering och outsourcing, kombinerat med kommunikation, har en ny modell föreslagits för hantering av reservdelslager.

The master’s thesis deals with study of the supply management in production company Česká zbrojovka, a.s. The theoretical solutions deal with spheres needed for determination of optimal supply of the specified materials. On the basis of an analysis of the actual state of affairs, conducted ABC analysis (analysis and calculation of the optimal supply for specified materials) contains the proposals and methods for economic order quantity for other inventory. The outputs of my thesis are the methods of the dealing with optimal supplies and the proposal.