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Improving the Efficiency of Inventory Management on a Case of Automotive Company

Student: Gurevich Margarita

Supervisor: Maria Yermolina

Faculty: Graduate School of Business

Educational Programme: Logistics and Supply Chain Management (Bachelor)

Year of Graduation: 2016

Theme of graduation thesis «Improving the Efficiency of Inventory Management on a Case of Automotive Company» Keywords: inventory management, automotive industry, optimal order quantity, component parts inventory, strategic profit model. The purpose of the bachelor thesis is to provide recommendations in order to improve the efficiency of inventory management on a case of the automotive company. The objectives of the paper include: the analysis of the economic activity of the company, identifying the current problems associated with logistics operations, analysis of the literature in order to identify the solutions to existing problems, the application of the developed recommendations, cost-effectiveness analysis of the measures. The object of research is the automotive manufacturer. The scope of the company's business is the production of cars, wholesale and retail trade of motor vehicles, motor vehicle parts and accessories. During the analysis of the logistics activity of the company the following problems were identified: excessive level of stocks of small parts, inefficient storage of spare parts in the warehouse and close to the production line, a high percentage of theft and lost parts. Finally, an action plan of improving the replenishment and movement processes of inventories of small automotive parts to the production line was developed. The economic feasibility of the practical application of the proposed recommendations was proved. As a result, return on equity in the strategic profit model has increased by 2.04%. The volume of bachelor work: pages - 97, figures – 31, tables - 20, the literature sources – 23, appendixes – 2.

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