Advanced

Producing on Real Demand - In a High Efficient Industry

Johnsson, Andreas and Eckerwall, Johanna (2010)
Department of Business Administration
Abstract
The production philosophy at Tetra Pak Japan is make-to-order. Although, in reality it is more make-to-stock due to the current pricing structure based on discounts for large volume orders. As a result, the inventory levels are high and the responsiveness towards customer demand is limited. Alongside, the marketplace is changing and the competition is increasing. This calls for a
change in the supply chain structure. The question is whether it is possible to
find a balance between bringing value to the customers and to Tetra Pak
Japan.The purpose of this master’s thesis is to explore the possibilities of combining
cost efficiency with responsiveness towards customer demands. This balance
will be investigated through co-printing on real... (More)
The production philosophy at Tetra Pak Japan is make-to-order. Although, in reality it is more make-to-stock due to the current pricing structure based on discounts for large volume orders. As a result, the inventory levels are high and the responsiveness towards customer demand is limited. Alongside, the marketplace is changing and the competition is increasing. This calls for a
change in the supply chain structure. The question is whether it is possible to
find a balance between bringing value to the customers and to Tetra Pak
Japan.The purpose of this master’s thesis is to explore the possibilities of combining
cost efficiency with responsiveness towards customer demands. This balance
will be investigated through co-printing on real demand.The process has involved continuous movement between the empirical world
and the theoretical world. The systematic combining enabled the search for
additional information when it was required for further development of
hypothesises. The thesis is based on quantitative and qualitative data. The data
has been collected using a triangular search of interviews, observations and
secondary sources.The thesis concludes that co-printing on real demand in combination with
multicolour printing will lead to 34 % reduction in the minimum order size for
customers and 61 % reduction of the finished goods inventories. The Total
Value Metrics is used as a framework to identify the value that this solution
will bring to the customer. The customers will benefit in terms of smaller order
sizes, more colourful designs and a supply chain that responds quicker to
changes on the marketplace. The proposal of changing the supply chain structure opens up for the desired balance between cost efficiency and
responsiveness towards customer demands. (Less)
Please use this url to cite or link to this publication:
author
Johnsson, Andreas and Eckerwall, Johanna
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Supply chain, real demand, co-printing, multicolour printing, Tetra Pak, Japan, Management of enterprises, Företagsledning, management
language
Swedish
id
2168042
date added to LUP
2010-05-17 00:00:00
date last changed
2012-04-02 18:27:55
@misc{2168042,
  abstract     = {The production philosophy at Tetra Pak Japan is make-to-order. Although, in reality it is more make-to-stock due to the current pricing structure based on discounts for large volume orders. As a result, the inventory levels are high and the responsiveness towards customer demand is limited. Alongside, the marketplace is changing and the competition is increasing. This calls for a
change in the supply chain structure. The question is whether it is possible to
find a balance between bringing value to the customers and to Tetra Pak
Japan.The purpose of this master’s thesis is to explore the possibilities of combining
cost efficiency with responsiveness towards customer demands. This balance
will be investigated through co-printing on real demand.The process has involved continuous movement between the empirical world
and the theoretical world. The systematic combining enabled the search for
additional information when it was required for further development of
hypothesises. The thesis is based on quantitative and qualitative data. The data
has been collected using a triangular search of interviews, observations and
secondary sources.The thesis concludes that co-printing on real demand in combination with
multicolour printing will lead to 34 % reduction in the minimum order size for
customers and 61 % reduction of the finished goods inventories. The Total
Value Metrics is used as a framework to identify the value that this solution
will bring to the customer. The customers will benefit in terms of smaller order
sizes, more colourful designs and a supply chain that responds quicker to
changes on the marketplace. The proposal of changing the supply chain structure opens up for the desired balance between cost efficiency and
responsiveness towards customer demands.},
  author       = {Johnsson, Andreas and Eckerwall, Johanna},
  keyword      = {Supply chain,real demand,co-printing,multicolour printing,Tetra Pak,Japan,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Producing on Real Demand - In a High Efficient Industry},
  year         = {2010},
}