Spare Parts Inventory Management with Substitution-Dependent Reliability

2018 ◽  
Vol 30 (3) ◽  
pp. 507-521 ◽  
Author(s):  
Amin Khademi ◽  
Burak Eksioglu
Keyword(s):  
Inventory Management ◽  
Spare Parts ◽  
Spare Parts Inventory

Spare parts inventory management: a new hybrid approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leandro Reis Muniz ◽  
Samuel Vieira Conceição ◽  
Lásara Fabrícia Rodrigues ◽  
João Flávio de Freitas Almeida ◽  
Tãssia Bolotari Affonso
Keyword(s):  
Inventory Management ◽  
Hybrid Approach ◽  
Spare Parts ◽  
Mining Company ◽  
Content Type ◽  
Mineral Sector ◽  
Spare Parts Management ◽  
Spare Parts Inventory ◽  
Total Inventory ◽  
Criticality Analysis

PurposeThe purpose of this paper is to present a new hybrid approach based on criticality analysis and optimisation to deal with spare parts inventory management in the initial provisioning phase in the mining industry. Spare parts represent a significant part of mining companies' expenditures, so it is important to develop new approaches to reduce the total inventory value of these items.Design/methodology/approachThis hybrid approach combines qualitative and quantitative methods based on VED (vital, essential and desirable) analysis, analytical hierarchical process (AHP), and e-constraint optimisation method to obtain the spare parts to be stocked. The study was applied to a large mining company. The mineral sector was chosen due to the great importance to the emerging Brazilian economy and the lack of researches in this sector. In addition, the spare parts have a relevant weight on the total inventory cost.FindingsPresent a novel approach combining multi-objective optimisation and multi-criteria evaluation approaches to tackle the inventory decision in spare parts management. This work also defines and classifies relevant criteria for spare parts management in the mineral sector validated by specialists. The proposed approach achieves an average increase of 20.2% in the criticality and 16.6% in the number of items to be stocked compared to the historical data of the surveyed company.Research limitations/implicationsThis paper applies the proposed approach to a mining company in Brazil. Future research in other companies or regions should analyse the adequacy of the criticality criteria, hierarchy and weights adopted in this paper.Practical implicationsThe proposed approach is useful for mining industries that deal with a large variety of resource constraints as it helps in formulating appropriate spare part strategies to rationalise financial resources at both tactical and strategic levels.Originality/valueThe paper presents a new hybrid method combining the AHP a multi-criteria decision making (MCDM) approach coupled with e-constraint optimisation to deal with spare parts inventory management allowing for a better spare parts inventory analysis in the initial provisioning phase and providing managers with a systematic tool to analyse the trade-off between spare parts criticality and total inventory value.

A Risk Based Methodology for Spare Parts Inventory Optimisation

2008 ◽  
Author(s):  
Ujjwal R. Bharadwaj ◽  
Vadim V. Silberschmidt ◽  
John B. Wintle ◽  
Julian B. Speck
Keyword(s):  
Inventory Management ◽  
Optimal Level ◽  
Risk Profile ◽  
Spare Parts ◽  
Inventory Level ◽  
Machine Availability ◽  
Inventory Optimization ◽  
Spare Parts Inventory ◽  
Current Context ◽  
Capital Intensive

Spare parts inventories assist maintenance staff to keep equipment in operating condition. Thus the inventory level of spares has a direct bearing on machine availability, a factor that is increasingly important in capital-intensive industries. This paper presents a risk based approach for spare parts inventory optimization. At the outset, the paper highlights the unique features of maintenance inventories, such as spare parts inventories, compared to other inventories such as work-in-progress or finished product inventories. After a brief mention of the principles on which many of the current inventory management models are based and their limitations, the paper presents a risk-based methodology to spares inventory management. ‘Risk’ in the current context is the risk in monetary terms that arises when a component (spare) is not available on demand. It is the expected value of loss, i.e., the product of the likelihood of unavailability of the spare from the inventory and an estimate of the consequence(s) of that unavailability. Given a budgetary constraint and the risk profile of a number of spares, the model gives an optimal inventory of spares. By basing the inventory on the risk profile of spares, the model includes factors that are not normally considered in various other models. The ultimate aim of the methodology is to have an optimal level of spares inventory such that machine availability, to the extent it is dependent on the level of spares inventory, is maximized subject to constraints. The methodology is expected to benefit both, operational and financial managers.

scholarly journals UPAYA IMPROVEMENT PENGENDALIAN PERSEDIAAN SUKU CADANG DENGAN METODE FIXED TIME PERIOD PADA PT XYZ

2019 ◽  
Vol 3 (2) ◽  
pp. 129-140
Author(s):  
Sazli Tutur Risyahadi (Universitas IPB - Indonesia) ◽  
Hanifah Yunan Putri (Universitas IPB - Indonesia)
Keyword(s):  
Standard Deviation ◽  
Inventory Management ◽  
Fixed Time ◽  
Service Level ◽  
Spare Parts ◽  
Order Quantity ◽  
Time Intervals ◽  
Time Period ◽  
Spare Parts Inventory ◽  
Abc Analysis

Abstract  Perusahaan yang memiliki keinginan untuk memenangkan persaingan yang terus meningkat di era globalisasi, perlu terus menerus melakukan perbaikan metode pengendalian persediaan suku cadangnya. Metode existing di perusahaan memiliki beberapa kekurangan seperti belum mempertimbangkan standar deviasi demand dan service level yang dikehendaki oleh perusahaan. Tujuan kajian ini adalah melakukan perbaikan pengelolaan persediaan suku cadang dengan menerapkan model yang memiliki karakteristik pengadaan yang sesuai dengan perusahaan. Model Fixed Time Period (FTP) adalah model yang sesuai karena telah memenuhi karakteristik pengelolaan persediaan di perusahaan seperti pemesanan barang dengan interval waktu yang konstan dan demand yang berfluktuatif. Hasil menunjukkan bahwa jumlah pemesanan pada suku cadang bandsaw dengan menggunakan metode existing perusahaan di tahun 2018 selalu lebih tinggi quantity ordernya dibandingkan dengan menggunakan metode FTP. Berbeda dengan suku cadang bandsaw, suku cadang thermoc, jumlah order dengan metode FTP tidak selalu lebih rendah; bahkan metode FTP seringkali lebih tinggi atau pun sama quantity ordernya pada tahun 2018.  Kata Kunci: Analisis ABC, Metode Fixed Time Period, Manajemen Inventori The company that has the desire to winning the increasing competition in the era of globalization need to improve the method of spare parts inventory control continually. Existing approaches in companies have several disadvantages such as not considering the standard deviation of demand and service level desired by the company. The purpose of this study is to improve the management of spare parts inventories by implementing a model that have right characteristics that are in line with the company. The Fixed Time Period (FTP) model is an appropriate model because it has fulfilled the characteristic of inventory management in companies such as ordering goods with constant time intervals and fluctuating demand. The results show that the number of orders on bandsaw parts using the existing company method in 2018 always has a higher order quantity than using the FTP method. Unlike bandsaw parts, thermoc parts, the number is not still lower; even the FTP method was often higher or equal to the order quantity in 2018. Keywords: ABC Analysis, Fixed Time Period Methods, Inventory Management

Spare Parts Procurement Planning at KM Trans Logistics

2014 ◽  
pp. 1-17
Author(s):  
Debjit Roy ◽  
Arindam Bandyopadhyay
Keyword(s):  
Inventory Management ◽  
Critical Role ◽  
Spare Parts ◽  
Storage Space ◽  
Spare Parts Inventory ◽  
Business Profitability ◽  
Selection Of ◽  
Procurement Planning

Inventory management plays a critical role in managing business profitability. Through this case, the participants will understand the role of managing inventory for timely workshop operations. Further, too much inventory can erode business margins and occupy storage space. This case also highlights the selection of an appropriate inventory review policy for managing the spare parts inventory.

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