This thesis has been carried out at Diac Metal AB at Torsvik outside of Jönköping. The company produces parts for, amongst others, office furniture and store equipment. The essay will be concentrated on one detail which is included in many of their products.

Today the company uses an ordering quantity based on experience which is rarely updated. Furthermore the operations are performed in both the company’s own engineering workshop but also an external workshop.

The purpose with the report has been to check whether an updating of today’s batch shaping and ordering system can mean simpler storage control and possibly cost reduction. Another part was to examine whether the operation costs could be lowered by submitting to own production or have an external workshop do it.

The work has mainly been implemented through comparing appropriate theories from literature around these matters. Information concerning operation costs, ordering history and necessary theoretical parameters were gathered through the company’s MPS system and through the mandator.

After the implementation it was revealed that today’s ordering system agreed good with the new system that was designed with the aid of economic order quantity and ordering system. A certain reduction of the yearly ordering costs is possible by using a larger ordering quantity. I was also revealed that the company could economize the operation costs by handing out the operations to the external workshop which has performed only one of these earlier.