Aim
The course gives basic as well as advanced knowledge regarding the creation of an effective and efficient materials flow in a company. The course also provides skills in methods for analysing material flows and materials handling needs and how to choose and design materials handling systems. Another goal is to give a short introduction to queuing theory.

Knowledge and understanding
For a passing grade the student must

• develop knowledge about tools and concepts that can be used to analyse and improve the materials flow in a company. The student should also know when to apply and use these tools and concepts. Finally the student, as a team member, should be able to plan and suggest acquisitions of materials handling equipment in an industrial context.

• independently describe and account for different techniques that are used in a materials flow analysis

• describe and explain a company’s materials handling functions

• extensively describe and independently analyse materials flow in a company and its related activities

• describe and define concepts and constructs concerning materials handling and logistics

• explain and identify when different techniques for analysis should be applied in the examination of different materials flows in a company

• describe and explain factors that affect the materials flow in a company

• independently describe and analyse the choice of materials handling equipment

• independently give a reason for and analyse the dimensioning of a warehouse

• describe and explain how basic production structures affect the materials flow in a warehouse or a factory

• understand and explain what factors affect the dimensioning of a materials handling system

• understand and explain the basics of safety stock dimensioning

• understand and explain what costs arise in a materials handling system and a warehouse

• understand the principles behind event-controlled simulation, as well as the limitations and possibilities afforded by this technique

• use commercial software (Extend) to create a computer-based simulation environment for analysing event-controlled processes

• use appropriate statistics to analyse input and output data to and from a simulation model and interpret the results that the model has generated. This involves among other things choices and adjustments of distribution functions as well as different types of hypothesis testing

• formulate relevant business administration problems with uncertainty in capacity supply and capacity demand in basic queuing models

• understand and describe analytic modelling of basic queuing systems. Focus lies on analysis of systems with exponentially distributed service periods and periods between customer arrivals. The students are also expected to be able to analyse systems with more general distribution in certain aspects

• calculate static condition probabilities for the queuing systems studied, as well as means for a number of performance measurements, such as queue lengths, waiting times, and costs

• interpret the solutions that are given from the models and put them into a business administration context

Skills and abilities
For a passing grade the student must

• apply techniques for analysing material flows and develop new solutions

• calculate and apply basic analysis for designing optimal stock levels

• judge and evaluate materials handling equipment for industrial acquisition

• evaluate and analyse problems related to materials flow

• analyse and apply the basics in dimensioning a warehouse

• independently formulate, solve, and interpret queuing problems (birth and death processes, M/M/c, M/M/c/K, M/M/c/N, M/G/1)

• independently formulate and create simulation models (modelling in the software called Extend)

• during lectures and exercises, independently and in a group discuss problems related to materials handling

• in written form describe as well as discuss their and others’ analysis in a project report

Judgement and approach
For a passing grade the student must

• critically and convincingly be able to use different techniques for analysing material flows in a company with the target of improving the efficiency. The student should be able to apply these techniques in an industrial context in order to help companies improve the efficiency in their internal material flows. The student should also understand the issue of warehouse dimensioning.

Contents
Material flow analysis, fixed and flexible handling equipment, load carriers and unit loads packages, storage and warehouse equipment, terminal automation and layout planning, analysis of stock levels and tools for designing optimal stock levels, queuing theory and simulation. Acquire or rent equipment, production layout’s and structure’s affect on material flow, organization structure’s affect on material flow, and study materials handling in practice.

Literature
Laguna, M & Marklund, J: Business Process Modelling, Simulation and Design, Prentice Hall, 2004.
Elvander, M. & Lundin, J: Compendium in materials handling. Engineering Logistics. 2008 (available for download)
Elvander, M. & Lundin, J: Exercises in materials handling, Engineering Logistics. 2008 (available for download)

Code: 0108. Name: Materials Handling.
Higher education credits: 3. Grading scale: UG. Assessment: Passed the written examination. Contents: Covers literature and lectures.

Code: 0208. Name: Cases.
Higher education credits: 1,5. Grading scale: UG. Assessment: Satisfactorily completed cases. Contents: In a case study, the students in groups (3-4) should solve a fictitious company's materials handling problems. A written report should be presented. Furthermore, completed exercises and assignments are required.

Code: 0308. Name: Computer Exercise.
Higher education credits: 1,5. Grading scale: UG. Assessment: Satisfactorily completed assignment and computer exercises. Contents: An assignment should be solved by the students in groups and a written report should be presented.