Delft University of Technology
Faculty Mechanical, Maritime and Materials Engineering
Transport Technology / Logistic Engineering

D. Edens Handling Re-Order Point.
Internship, Report 2000.LT.5418, Transport Technology, Logistic Engineering.

When assembling an axle, one of its important aspects is that all parts arrive on schedule in the right quantity and in good quality.
To control this delivery-process of parts, Scania uses several ordering methods like KANBAN, Batch and Re-Order Point (ROP).
In this report the analysis of the implementation of Re-Order Point method. is described.

One year ago, about 500 different parts have been changed from Batch-order method to Re-Order Point method. Batch-order method didn't seem to be the right method for these parts. Better control in ordering parts and an efficient use of stock space is what Scania wants to achieve. Scania is interested in the results of this change from Batch-order method to Re-Order Point method. Results, like better control and efficient use of stock space, are of great interest. It's also important to know how a Re-Order Point part is acting: Is production secured every day and has stock space been used efficiently?

Answers to these questions have been found by analysing historical data. The conclusion is that:
  1. Production is secured;
  2. The average stock quantity is too high.
Average stock quantity is too high due to high Security Stock Quantities and large batch quantities.
Keeping in mind that production must be secured it is possible to adjust these Security Stock Quantities and batch quantities.
Furthermore it is important to determine overall guidelines for these Re-Order Point parts. Analysing again and considering these guidelines can lead to a second adjustment for Re-Order Point parts.
Finally this will result in an optimised use of stock space.

Reports on Logistic Engineering (in Dutch)
Modified: 2001.03.27; , TU Delft / 3mE / TT / LT.