INTERNAL LOGISTICS OF TENHULTSPRESSGJUTERI AB

Abstract: Tenhults Pressgjuteri AB is facing growth in expansion, which results in need of bigger premises. The company has bought an adjoining property to overcome this problem. This thesis givessuggestions on how the logistics of these properties should be managed, which transport system is most suitable to use, where deliveries will take place and how the stock will be set upin the new premises. To obtain relevant data and information have a description of the facts, measurements and calculations been made. Selections and ratings have been used to develop suitable alternative solutions. The payback-method has been used to calculate the investments. A specially designed evaluation chart forms the basis of which transport system to be used. Lastly, a sensivity analysishas been conducted to determine how reliable the results are. Deliveries and inventory have been determined based on the choice of transport system.The thesis shows that the choice of transport system depends on the volumes that are carried, distance and environmental conditions. The market offers both automated transport systems and systems that require a driver. The automated transport system willnot be profitable whenthe cargo volume is too small since the investment costs are significantly higher. However, the operating costs are low which makes it profitable with an increased cargo volume. Closer analysis of existing production flow could provide a more credibleresult. What also must be taken into account is thatthe costs is not preciseand may differ in reality. The costs are assumed to be so lifelike that they do not affect the result more than marginally.