This report is about logistics principles that involve different logistics strategies to achieve the best working method which helps to improve a work environment and optimize productivity. The logistics principles that are being used today on Scania’s engine processing workshop are mostly based on past experiences and therefore there is a lack of scientific basis.
The purpose of the report is to analyze theories within logistics and then based on facts confirm and rank the principles that has been developed by the Logistics Department of Scania’s engine processing workshop. In theory part, the focus has been on giving a greater insight into the subject of logistics principles and term other principles that affect logistics at Scania.
The collection of the theories for the report was conducted through a literature study where course literature and data collection were processed. Interviews and surveys have been conducted among the staff of the relevant department to gather information that gives a better picture of the current situation.
In order to rank the principles, a theoretical measuring instrument called Analytical Hierarchy Process (AHP) was used to analyze a decision problem. The method can visualize how different parameters have an impact on each other and how paired comparisons provide a priority order of input.
The logistics principles were divided in four categories and used as inputs in the AHP analysis. The result was then used to rank the logistics principles.