A spare parts stocking policy based on equipment criticality

Rommert Dekker, Marcel Kleijn and P.J. de Rooij

No EI 9625-/A, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute

Abstract: Demand for spare parts can sometimes be classified into critical and non-critical demand, depending on the criticality of the equipment in which it is installed. To effectively handle this situation in spare parts inventory control, we propose a stocking policy where some of the stock is reserved for critical demand. For Poisson demand and a lot-for-lot stocking policy with positive replenishment leadtime, approximations of the service levels for both classes of demand are derived, and verified by simulation. Finally, a numerical example is presented to illustrate the advantages of using the proposed policy.

Keywords: demand classes; equipment criticality; inventory control; spare parts (search for similar items in EconPapers)
Date: 1996-01-01
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Journal Article: A spare parts stocking policy based on equipment criticality (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:ems:eureir:1384

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