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Lagerstyrning vid Frigoscandia Freezer AB

Ottosson, Mats and Andersson, Conny (1997)
Packaging Logistics
Abstract
Frigoscandia Freezer AB have seen themselves as an entrepreneur company for a long time, but have lately begun to realise that they have to go against a more administrative era. With that insight they have begun to examine their enterprise in order to achieve this. The division Team Spare Parts has started a project with the intention of checking-up the inventory management, and improving it for the future. To get support for this and other point of views, they decided to let us do our exam thesis as a part of the project.

The first part of the thesis deals with the appropriate inventory theory. All calculations in the other parts of the thesis have been based upon this. It is well known and reliable theoretic discussions that have been... (More)
Frigoscandia Freezer AB have seen themselves as an entrepreneur company for a long time, but have lately begun to realise that they have to go against a more administrative era. With that insight they have begun to examine their enterprise in order to achieve this. The division Team Spare Parts has started a project with the intention of checking-up the inventory management, and improving it for the future. To get support for this and other point of views, they decided to let us do our exam thesis as a part of the project.

The first part of the thesis deals with the appropriate inventory theory. All calculations in the other parts of the thesis have been based upon this. It is well known and reliable theoretic discussions that have been brought up. We have made efforts to write examples that will make the theory easier to understand.

All items cannot be treated in the same way, but similar can. With this background the stock items were categorised. We revised the recommendations from the company and came up with four groups, A, G, K and L. The A group is defined with an ABC-analysis on the volume value. The analysis showed that 10% of the total amount of stock items, which is about 850, corresponds to 80% of the company's purchase to stock. The G group corresponds to guarantee and is stock items because the customers get a guarantee on the installations. The K group corresponds to critical items. They have to be stock items because they are of vital importance for the function in the installations. The fourth is the L group and it consists of stock items because it offers the customers good service at a cheap price for the company. For every group there are suggestions of how they can be controlled and followed up. When categorising the items we presumed that the A group was the most important. Because of this, the major part of the thesis focuses on this one.

To test our assumption that the A group is the most important, we did an analysis on 15 items within the group. The choice of items was made with the purpose of showing a broad variation, considering withdraw frequency, price and yearly consumption. The aim was also to test if the theory accounted for can be used. The analysis was done in the form of simulations with historic data as a parameter. This was later compared with the origin inventory growth. The group of 15 items represents 24% of the total volume value and almost as much of the capital tide-up. It is therefore a great section that has been examined - in economic variables. The analysis and simulations supported our assumption that the A group is the most important, and that there are great potentials in improving it. The total capital tide-up could in the simulations be reduced with 40% or 900 000 SEK, compared to the origin. We were also able to prove that the theory could be applied to the A group.

When working with the 15 items we used different key variables and parameters. Our opinion is that they give a good picture of the inventory management. Today the company has not followed-up any of the recommendations we presented in our analysis, which we suggest they should do. The inventory turnover rate, capital tide-up, average inventory level and customer service level are of particular importance. (Less)
Please use this url to cite or link to this publication:
author
Ottosson, Mats and Andersson, Conny
supervisor
organization
year
type
H2 - Master's Degree (Two Years)
subject
keywords
lagerstyrning, Frigoscandia Freezer AB, inventory turnover, Technological sciences, Teknik
language
Swedish
id
1318499
date added to LUP
2008-06-03 00:00:00
date last changed
2010-02-01 14:40:03
@misc{1318499,
  abstract     = {Frigoscandia Freezer AB have seen themselves as an entrepreneur company for a long time, but have lately begun to realise that they have to go against a more administrative era. With that insight they have begun to examine their enterprise in order to achieve this. The division Team Spare Parts has started a project with the intention of checking-up the inventory management, and improving it for the future. To get support for this and other point of views, they decided to let us do our exam thesis as a part of the project.

The first part of the thesis deals with the appropriate inventory theory. All calculations in the other parts of the thesis have been based upon this. It is well known and reliable theoretic discussions that have been brought up. We have made efforts to write examples that will make the theory easier to understand.

All items cannot be treated in the same way, but similar can. With this background the stock items were categorised. We revised the recommendations from the company and came up with four groups, A, G, K and L. The A group is defined with an ABC-analysis on the volume value. The analysis showed that 10% of the total amount of stock items, which is about 850, corresponds to 80% of the company's purchase to stock. The G group corresponds to guarantee and is stock items because the customers get a guarantee on the installations. The K group corresponds to critical items. They have to be stock items because they are of vital importance for the function in the installations. The fourth is the L group and it consists of stock items because it offers the customers good service at a cheap price for the company. For every group there are suggestions of how they can be controlled and followed up. When categorising the items we presumed that the A group was the most important. Because of this, the major part of the thesis focuses on this one.

To test our assumption that the A group is the most important, we did an analysis on 15 items within the group. The choice of items was made with the purpose of showing a broad variation, considering withdraw frequency, price and yearly consumption. The aim was also to test if the theory accounted for can be used. The analysis was done in the form of simulations with historic data as a parameter. This was later compared with the origin inventory growth. The group of 15 items represents 24% of the total volume value and almost as much of the capital tide-up. It is therefore a great section that has been examined - in economic variables. The analysis and simulations supported our assumption that the A group is the most important, and that there are great potentials in improving it. The total capital tide-up could in the simulations be reduced with 40% or 900 000 SEK, compared to the origin. We were also able to prove that the theory could be applied to the A group.

When working with the 15 items we used different key variables and parameters. Our opinion is that they give a good picture of the inventory management. Today the company has not followed-up any of the recommendations we presented in our analysis, which we suggest they should do. The inventory turnover rate, capital tide-up, average inventory level and customer service level are of particular importance.},
  author       = {Ottosson, Mats and Andersson, Conny},
  keyword      = {lagerstyrning,Frigoscandia Freezer AB,inventory turnover,Technological sciences,Teknik},
  language     = {swe},
  note         = {Student Paper},
  title        = {Lagerstyrning vid Frigoscandia Freezer AB},
  year         = {1997},
}