Aroposal for reducing the avarage inventory during an expansion

Examensarbete för masterexamen

Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.12380/251031
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Type: Examensarbete för masterexamen
Master Thesis
Title: Aroposal for reducing the avarage inventory during an expansion
Authors: Pettersson, David
Treutiger, Oscar
Abstract: The e-commerce industry has during the last decade seen a steady growth where the same distribution channel is becoming more integrated with its customers’ life. With the rapid growth the industry has seen, it has brought some issues to life where some are linked to the ability of handling scalability. The report aimed to handle the operational scalability and more specifically, how to reduce the average inventory and tied up capital. The studied company in this report’s case is Jollyroom, a fastgrowing organisation and from March (2017) also the market leader in its segment. The organisation has since its launch in 2010 increased its turnover by approximately 100% each year, and the warehouse space needed has increased from one building to three. The organisation has reached an impasse where additional warehouse space is needed if they keep current operations in play. The report utilises the approach of structuring the purchasing operations by applying an economic order quantity to identify lot sizes and the cycle service safety stock to make sure there are products available when they are demanded by customers. This fairly simple approach results in a 55% reduction of the average inventory, a 52% increase of the inventory turnover, a 25% decrease in tied up capital, and a reduction of 32% in inventory carrying costs.
Keywords: Maskinteknik;Mechanical Engineering
Issue Date: 2016
Publisher: Chalmers tekniska högskola / Institutionen för teknikens ekonomi och organisation
Chalmers University of Technology / Department of Technology Management and Economics
Series/Report no.: Examensarbete - Institutionen för tillämpad mekanik, Chalmers tekniska högskola
URI: https://hdl.handle.net/20.500.12380/251031
Collection:Examensarbeten för masterexamen // Master Theses



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