Inventory control of intermediatestorage in the steel industry:analysis of forecasting accuracyand erroneous products : Case study on SSAB, Oxelösund

Sammanfattning: The case study has been carried out at SSAB Oxelösund, where a major project is on the way to improve the system support for substance planning, to ensure that the right products are actually produced. Purpose: The purpose of this thesis is to analyze inventory control in intermediate storage within steel industry with data-driven methods and simulation. Where the thesis aims to identify the causes and improvement opportunities of the missing products at the intermediate storage. Method: This study consisted of quantitative research with a deductive approach. Which was done by analyzing the forecast accuracy and erroneous product at rolling, and study how changes in safety stock and batch sizes affect the production with help of discrete event simulation. All analysis was done on secondary data provided by SSAB. Results: Few product groups had high percentual error and absolute error. About one percent of products at rolling had wrong product type. Lastly, the study found that larger batches resulted in less orders being missed. The changes of safety stocks did not have any significant impact on the simulation, due to possible errors under simulation modeling.  Conclusion: Depending on the actual production in other steel industries, the contribution of this thesis only applies to similar production. Suggestions for future research should be to improve the simulation and apply other inventory control methods. In addition, to try other forecasting methods to improve the demand forecasts and try to find a root of the problem for wrong production.