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Balancing inventory levels and setup times - An analysis and outline of a decision-making model

Adelfar, Mohsen and Beythien, Henning (2017) MIOM01
Production Management
Abstract
Background and Research Question
Historically, Lindab has largely focused its efforts on the production, but as a part of recent
development in company strategy, supply chain management has gained more attention. In
this regard, more attention has been given to stock reduction and minimizing total setup times
to get a leaner production. Therefore, the company wants to investigate the current production
scheduling and sequencing in two well-defined production lines to analyze parameters
influencing inventory management and production planning decisions. Furthermore, based
on the findings, a model is outlined to support planners in decision making within production.
Methodology
The presented analysis and model outline was conducted... (More)
Background and Research Question
Historically, Lindab has largely focused its efforts on the production, but as a part of recent
development in company strategy, supply chain management has gained more attention. In
this regard, more attention has been given to stock reduction and minimizing total setup times
to get a leaner production. Therefore, the company wants to investigate the current production
scheduling and sequencing in two well-defined production lines to analyze parameters
influencing inventory management and production planning decisions. Furthermore, based
on the findings, a model is outlined to support planners in decision making within production.
Methodology
The presented analysis and model outline was conducted in cooperation with Lindab AB. The
study followed an abductive research approach and focused on collecting qualitative as well as
quantitative data through several methods. The quantitative data collected originated from
several databases and was supplemented with semi-structured interviews.
Theoretical Framework
This study is based upon the established theory on inventory management and production
scheduling and sequencing. Furthermore, approaches described in theory are used to
investigate the company and outline a production planning model.
Conclusion
Throughout the analysis, it could be shown that the company bases their inventory
management as well as production scheduling and sequencing on the most relevant
parameters. However, the values of these parameters are often not optimal and improvements
could be made to further reduce the costs associated with this area. Although, the current
approach of utilizing the experience of production operators to improve a production lines
performance shows some potential, the obtained results vary between operators and could be
improved by further structuring their approach to production scheduling and sequencing. A
standardized approach is suggested by this study, to increase savings in the areas of average
inventory levels and total setup time. (Less)
Please use this url to cite or link to this publication:
author
Adelfar, Mohsen and Beythien, Henning
supervisor
organization
course
MIOM01
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Inventory Management, Setup Times, Average Stock on Hand, VMI, Production Scheduling and Sequencing
other publication id
17/5570
language
English
id
8919108
date added to LUP
2017-06-27 15:39:23
date last changed
2017-06-27 15:39:23
@misc{8919108,
  abstract     = {Background and Research Question
Historically, Lindab has largely focused its efforts on the production, but as a part of recent
development in company strategy, supply chain management has gained more attention. In
this regard, more attention has been given to stock reduction and minimizing total setup times
to get a leaner production. Therefore, the company wants to investigate the current production
scheduling and sequencing in two well-defined production lines to analyze parameters
influencing inventory management and production planning decisions. Furthermore, based
on the findings, a model is outlined to support planners in decision making within production.
Methodology
The presented analysis and model outline was conducted in cooperation with Lindab AB. The
study followed an abductive research approach and focused on collecting qualitative as well as
quantitative data through several methods. The quantitative data collected originated from
several databases and was supplemented with semi-structured interviews.
Theoretical Framework
This study is based upon the established theory on inventory management and production
scheduling and sequencing. Furthermore, approaches described in theory are used to
investigate the company and outline a production planning model.
Conclusion
Throughout the analysis, it could be shown that the company bases their inventory
management as well as production scheduling and sequencing on the most relevant
parameters. However, the values of these parameters are often not optimal and improvements
could be made to further reduce the costs associated with this area. Although, the current
approach of utilizing the experience of production operators to improve a production lines
performance shows some potential, the obtained results vary between operators and could be
improved by further structuring their approach to production scheduling and sequencing. A
standardized approach is suggested by this study, to increase savings in the areas of average
inventory levels and total setup time.},
  author       = {Adelfar, Mohsen and Beythien, Henning},
  keyword      = {Inventory Management,Setup Times,Average Stock on Hand,VMI,Production Scheduling and Sequencing},
  language     = {eng},
  note         = {Student Paper},
  title        = {Balancing inventory levels and setup times - An analysis and outline of a decision-making model},
  year         = {2017},
}