Inventory Management of Volvo Construction Equipment

Manufacturing organisations are adapting the trend of lean methods to survive and compete in the dynamic market. The companies can evolve by meeting the needs of the customers and providing a satisfactory product, alongside this they can implement the lean optimalization methods to increase the efficiency. The aim of current research is to investigate the potential factors which affect the inventory size in the lean manufacturing environment, identify the perfect inventory management approach and develop an understanding of how the optimal inventory size can be achieved. A literature review was also performed to get an understanding of the current study on this topic. While gathering data, semi-structured interviews were conducted with engineering, line management and operations, observation technique was also used to collect empirical data. The inventory techniques were applied and satisfactory results were obtained.