Optimise initial spare parts inventories: an analysis and improvement of an electronic decision tool

M.E. Trimp, S.M. Sinnema, Rommert Dekker and Ruud Teunter

No EI 2004-52, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute

Abstract: Control of spare parts is very difficult as demands can be very low (once in a few years is no exception), while the consequences of a stockout can be severe. While in the past many companies choose to have very large spares inventories, one now observe trends in areas with good transportation connections to keep spare parts at the suppliers. Hence it is very important to make a good selection of which spare parts to stock at the start-up of new plants. To this end Shell Global Solutions has developed an electronic decision tool, called E-SPIR. In this report we analyse the decision rules used in it. We consider stockout penalties and advise to use criticality classifications instead. Furthermore, we investigate minimum stock levels, demand distributions and order quantities.

Date: 2004-12-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://repub.eur.nl/pub/1830/ei200452.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ems:eureir:1830

Access Statistics for this paper

More papers in Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute Contact information at EDIRC.
Bibliographic data for series maintained by RePub ( this e-mail address is bad, please contact ).