| Summary: | Chicago Pneumatic Division is a division in the Atlas Copco Group consisting of five acquisitions now operating together. Due to the number of recent acquisitions by Chicago Pneumatic Division, the number of distribution centres has increased, making its structure more complex. The main question studied are how many distribution centres the division should operate and how the product companies best will supply the distribution centres, today as well as in the future. Four distribution models are created, with consideration to goods flow as well as financial and environmental aspects, both in present and future situation. The thesis also includes bench-marking with Atlas Copco Tools and Assembly Systems, Electrolux and Dell. The analysis showed that the division should operate three distribution centres, carrying inventory of products from all production companies. This model is also sustainable environmentally and brings the benefit of one consolidated shipment to the customers.
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