A high level of delivery precision from a focal firm to their customers has the potential to provide competitive advantage amongst competing businesses. This report will detail the subject of inventory management and utilize theories on the subject in order to provide recommendations to a multinational company that wishes to increase their delivery precision. The results of the work conducted are presented and recommendations given in the form of firstly analyzing inventory and segregating the product range where applicable. This should be treated as the first priority to gain an insight into where potential problem areas lie and to determine the products that are the biggest contributors to the overall value of goods sold. As a secondary measure, managing supplier relations carefully and the strategic sourcing of materials are strategies that will help to effectively reduce problems through increased visibility of information in communication channels. An accurate demand forecasting model will predict demand ahead of time, ensuring that the correct products are being held as inventory for no longer than is strictly needed, with a safety stock system being used as a safety net for those products that are suitable. A theoretical implementation of exponential II smoothing based forecasting coupled with standard deviation based safety stock calculations, yields results that effectively raises delivery precision. By forecasting demand for individual months and using calculated safety stock levels, the model is able to adjust for the shortfall between forecasted demand and actual demand.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hb-21171 |
| Date | January 2018 |
| Creators | Ingram, Thomas, Hagberg, Jesper |
| Publisher | Högskolan i Borås, Akademin för textil, teknik och ekonomi, Högskolan i Borås, Akademin för textil, teknik och ekonomi |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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