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Analysis of pros and cons of implementing VMI between two subsidiaries of Höganäs AB

Rasneur, Caroline
(2016)

Files

RasneurCaroline_10221136_2016.pdf
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  • 1.59 MB

Details

Supervisors
Semal, Pierre
Faculty
Louvain School of Management
Degree label
Master [120] en Ingénieur de gestion
Abstract
The purpose of this work is to determine if implementing a VMI replenishment process between two subsidiaries of Höganäs AB for a specific product would be beneficial for the group. Although we venture some further possible improvements, because of our limited time factor, we only focus on the quantification of the consequences considering the inventory level at both plants, and the transport costs. We created an Excel simulation model to quantify these factors. We considered two delivery frequency: once or twice a month. From our analysis, it results that the inventory levels can be decreased on both sides whatever the delivery frequency. However, the transport costs only lightly decrease if the delivery frequency is once a month.