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Stock and Cuts in Piteå: Standardization vs. Customization in the pulp and paper industry
Umeå University, Faculty of Science and Technology, Department of Mathematics and Mathematical Statistics.
2019 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

A major challenge for companies is to find the appropriate balance between standardization and customization. Today, Smurfit Kappa Pite˚a manufactures Kraftliner paper with a great range of grades, grammages, widths and diameters which increases complexity and total costs. The purpose of this work is to identify what savings potential may lie in reducing the number of articles. In this project we focused on the costs incurred in trimming and stocking. A standardization tool has been designed to be able to look at different standardization scenarios. The results show that if Smurfit Kappa Pite˚a were to standardize and only produce reels with a diameter of 1400mm, they would be able to reduce their required safety stock and the number of trim reels needed to fulfill demand. Thereby annually reducing their inventory costs by 316 440 EUR and the possibility of gaining 4 020 462 EUR in net value by selling the minimized waste and trim reels as ordered reels to European customers.

Place, publisher, year, edition, pages
2019. , p. 34
National Category
Mathematics
Identifiers
URN: urn:nbn:se:umu:diva-160501OAI: oai:DiVA.org:umu-160501DiVA, id: diva2:1327387
External cooperation
Smurfit Kappa Piteå
Educational program
Master of Science in Engineering and Management
Supervisors
Examiners
Available from: 2019-06-19 Created: 2019-06-19 Last updated: 2019-06-19Bibliographically approved

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Stock and Cuts in Piteå(2290 kB)19 downloads
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Type fulltextMimetype application/pdf

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf