INVENTORY CONTROL SYSTEM : Optimization of production system and reliability

The main idea of this research to solve the problem of inventory management for the paper industry SPM PVT limited. The aim of this research was to find a methodology by which the inventory of raw material could be kept at minimum level by means of buffer stock level.The main objective then lies in finding the minimum level of buffer stock according to daily consumption of raw material, finding the Economic Order Quantity (EOQ) reorders point and how much order will be placed in a year to control the shortage of raw material.In this project, we discuss continuous review model (Deterministic EOQ models) that includes the probabilistic demand directly in the formulation. According to the formula, we see the reorder point and the order up to model. The problem was tackled mathematically as well as simulation modeling was used where mathematically tractable solution was not possible.The simulation modeling was done by Awesim software for developing the simulation network. This simulation network has the ability to predict the buffer stock level based on variable consumption of raw material and lead-time. The data collection for this simulation network is taken from the industrial engineering personnel and the departmental studies of the concerned factory. At the end, we find the optimum level of order quantity, reorder point and order days.

IT-system och organisationsutveckling

This report describes work on the thesis “IT systems and organizational development”. The work is carried out on Stocksbro Energi AB, during spring 2009. The company wanted better flow in their production but also review if the inventory management function located in Visma SPCS Administration 2000, could be used in the organization. Under the first part of this report the system were tested to ensure if the system would work together with the organization. After testing the desired features they were evaluated along with two of the users to the system at the company. The wanted functions could not be obtained whenthe Admin 2000 is an economic system and are not made for the producing companies. Thereafter the theoretical possibility was examined of introducing a more advanced system to get the desired functionality to work together with the organization. To introduce a more advanced system will require major changes of the organization, before, during and after the introduction. It is therefore important how the management implements a possibility of a new system. It’s important to make the staff join in this implementation but also get as much as possible out of the system.To conclude the thesis a goal and problem analysis but also a solution proposal was made with the help of the FA/SIMM method. Also some suggestions are mentioned how the company could proceed in the implementation of the proposals for a solution.