Revising inventory management policies for spare parts: a case study

Abstract

This case study focuses on providing management decision support in a situation where a large global equipment manufacturer is revising its inventory policies for spare parts. A classification model for facilitating the revision of inventory management policies is developed and tested with the transaction data of one product line. Owing to the objectives of the case company and the limited amount of data, the study applies some classification criteria that are different from former spare part classification studies. With the presented model it is possible to point out potential pilot items for inventory management development actions, such as moving towards make-to-order, increasing visibility in the supply chain, or moving towards more dynamic inventory control. As this is a single case study, the wider generalisability of the model is limited. However, the study expands the understanding on different spare part classification models and their uses.