Title: Revising inventory management policies for spare parts: a case study

Authors: Annastiina Rintala; Janne Huiskonen

Addresses: Department of Industrial Management, Lappeenranta University of Technology, P.O. Box 20, 53851 Lappeenranta, Finland ' Department of Industrial Management, Lappeenranta University of Technology, P.O. Box 20, 53851 Lappeenranta, Finland

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.

Keywords: spare parts; inventory management; supply chain management; SCM; case study; inventory policy; decision support; global equipment manufacturers; make-to-order; MTO; supply chain visibility; dynamic inventory control.

DOI: 10.1504/IJMP.2015.068304

International Journal of Management Practice, 2015 Vol.8 No.1, pp.21 - 42

Available online: 25 Mar 2015 *

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