Sustainable supply logistics and inventory management : A case study at Axelent AB

Abstract: The purpose of this study is to give an insight to operation and managerial possibilities anddifficulties of sustainable inventory management. The objective is to give a general picture ofwhat is available in terms of economic models as well as the implications from the currentsituation and eventual changes. The study uses an abductive approach with both qualitativeand quantitative data. Quantitative data is composed of current available measurement at thecase company, Axelent AB. While the qualitative is composed of interviews to establish theoperational framework at the case company.The study found that both the common Economic Lot-Scheduling and Economic OrderQuantity models have been successfully proven to be adaptable to include emission. Tomeasure emission's, the GHG Protocol is found to be useful and is recommended. Thoughmonetisation of emission’s are not consecutively required by the models, it is recommendedwith well selected prices. There is a need to establish the effects of a change in operations inorder to avoid negative effects on the everyday operations. The current way of operationwould most likely be changed if emission’s would be introducing into the inventorymanagement models.The study only included the supply where the company was the order trigger, therebyexcluding vendor-controlled inventory. The warehouse that was studied is in a shared buildingwith production. There were two components taken as examples for calculations.