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Synsam started the Synsam Group's Production and Innovation Center (SPIC) on Frösön in the summer of 2022 as part of their sustainability work. The factory locating in Sweden contributes to shorter lead times, reduced carbon footprint, and more environmentally friendly transportation. Synsam has its own collections, called \textit{House Brands}, where some are produced at the newly established production facility in Sweden, while others are outsourced for production in Asia. The outsourced production has longer lead time compared to the SPIC-flow, larger minimum order quantities, and greater risks in transport delays.

The aim of the project was to compare production at SPIC, with the purchasing process from Asia, the Asia-flow. This to investigate the challenges and opportunities posed by establishing in Sweden, particularly concerning costs, risk, and logistics. The focus was on how the two flows tie up capital in finished goods inventory and inventory for components and materials, as well as the size of inventory holding costs.

With the aim as a starting point, the project's first phase was initiated: a preliminary study with a literature review and informal interviews. Subsequently, the second and third phases involved data collection and processing. The fourth phase involved modeling, where optimization of the procurement and production processes was carried out entailed on selected parameters. Lastly, the fifth phase involved scenario analysis. Throughout all phases, verification and validation have been conducted.

The project's conclusion shows that product groupings where the products are expensive or have low demand tie up less capital in the SPIC-flow compared to the Asia-flow. This is mainly because SPIC can produce smaller batches, thereby reducing the number of products in inventory since production can be more precisely aligned with demand. Another conclusion from the project is that in the event of a sudden decreased demand, the SPIC-flow has fewer products that need to be recycled compared to the Asia-flow, resulting in less capital tied up.

The work concludes by presenting recommendations and suggestions for further work.