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Hantering av köpessymaskiner på VSM Group

by Nordén, Erik; Söderbring, Fredrik

Abstract (Summary)
AbstractThe purpose of this study is to investigate how the company Viking Sewing Machines (VSM) should handle the storing of its sewing machines bought from the Far East. Should VSM continue to store the machines in assistance with Schenker, or should the company handle the process by itself and store the machines in its own warehouse.This question is interesting at the same time as it is complex. There are several aspects to consider prior to a decision can be made. It demands a thorough forecast planning, due to the three to four months long lead-time from the Far East. The company needs to consider this aspect carefully in order to keep a high quality delivery service during the sale fluctuations. The trade with sewing machines is highly dependent on the season, with increasing sales during the winter. To be able to maintain the leading position on the market VSM has been forced to make changes in its structure of products, where the simpler machines have been taken away from the production. The advanced machines are still produced by VSM, these machines have an impressive capacity that manages the most advanced sewing and patterns. The machines that have been taken away from production have been replaced with low-priced machines traded from the Far East. This change has resulted in that parts of VSM’s production are outsourced to low paid countries. We have conducted a case study, and our information consists of primary and secondary data. This study is done in order to collect data that is necessary for answering our research questions, and find a result for a decision. The primary data consists of the results received during the interviews, and the secondary data are based on the literature study.We have done calculations of how much of the space in the warehouse will be occupied by the trading machines, calculating safety-stock and the total warehouse has attained this.The study illustrates that by using an external part that handles the warehouse will result in increased costs for VSM. The result of the study is accomplished by comparing the cost of having the machines at “home” to the cost of using Schenker. The calculations demonstrate that it is much more expensive for VSM to make use of an external part. VSM has a fully automation system and at Schenker costs of handling the machines will be added, these costs consists of input and output of the products, besides the cost of renting the warehouse. The differences of having the machines on shelves, so-called “brätt”, at VSM are therefore considerably beneficial. It would also lead to a rationalization when handling the machines when they are sold and the pallets are to be loaded to respective dispatch note. At VSM the machines are registered in the computer system and they already have a functional packing system. The numbers that the report not have bin taken in consideration are the investment costs that are required for making the introduction of the machines at VSM´s warehouse possible. The problem are as said earlier a complex decision variable and to make a decision you have to estimate the global approach and not only to one cost unit. It is therefore from only this report hard to come by a 100% resolution.
Bibliographical Information:

Advisor:

School:Högskolan i Jönköping

School Location:Sweden

Source Type:Master's Thesis

Keywords:

ISBN:

Date of Publication:12/07/2006

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