Improvements of an Inventory Control System with Simulation-based Analysis

Abstract: This thesis aims to improve the inventory control system of a company´s RDC in Norrköping, Sweden. Inefficiencies and non-optimal processes have been identified in the current system, which could negatively affect operations. The study addresses three questions: understanding the current system, identifying improvements, and adjusting the improved system to fit inventory control constraints. A literature review and case study were conducted, revealing lower service levels and higher costs than expected. Experimental scenarios were simulated to examine different improvements, such as using economic order quantity, different safety stock equations, and investigating service levels.