This thesis examines how a growing company in the plastic industry can optimize their finished goods inventory to improve resource efficiency without affecting the goal of a seven-day delivery time. The company acquired a business system in the year 2023 which revealed the challenges of high inventory levels. Since high inventory levels lead to high tied-up capital and increased inventory carrying costs this needs to be analyzed.

The focus of the thesis is to lower inventory levels and improve inventory management processes by using different theories and methods in inventory management. Some of the different theories and methods used in the thesis are ABC-classification and the EOQ-model (Economic Order Quantity). The goal is to find more suitable inventory levels and a more efficient warehouse layout which lowers both transportation distances and tied-up capital, while also getting a higher inventory turnover speed.

The results obtained show that the company can lower their inventory levels greatly by focusing on adjusting the safety stock, developing a product specific reorder point, and adjusting their order quantities according to the calculated EOQ. A change of the warehouse layout is also proposed to support faster and more efficient material handling.  

Finally, the company is recommended to gradually implement the proposed results to ensure that the production capacity can maintain the necessary delivery times without the risk of inventory shortages. Future research may include a deeper analysis of the material- and tool inventories to further optimize the company’s total inventory management.