AUTHOR
Lekander, Anette

DATE
2001-05-02

DEPARTMENT
Business Administration and Social Sciences / Industrial Logistics

SUMMARY
This study concerns a cost analysis of loading pellets and fines at LKAB’s terminals in Kiruna, Svappavaara and Malmberget. The goal of the study was to be able to give suggestions as to how to cut loading costs at the terminals.

The loading cost includes maintenance, labour cost, control and planning. Linear regression was used to analyse the factors that influence the loading cost. The regression was performed for each terminal separately and the results compared with each other. The influence of the following factors on the loading cost were also studied: Personnel, accumulated pellets volume, monthly pellets volume, and average temperature.

The study highlighted the problem of obtaining ‘good’ data to work from. The information that was studied was influenced by other factors, such as variation in stock levels, where the pellets were stored and variation in demand. It proved difficult with the data available to draw meaningful conclusions due to these variations.

ISSN 1402-1617 / ISRN LTU-EX--01/145--SE / NR 2001:145