Management Paper: Conquering the unique challenges and complexities of spare parts inventory management
Spare parts may seem like merely a small component of the production process, but they play a major role in ensuring that manufacturing operations run smoothly and successfully. For manufacturers and maintenance, repair, and overhaul (MRO) companies, having the right spare parts in the right place at the right time is critical – and failing to do so can result in costly production downtime and delays well as drops in levels of customer service and satisfaction.
Spare Parts Inventory Planning seems simple – as it is essentially entails inventory planning and management – but in reality it’s highly complex. Indeed, standard inventory planning models are not up to the task of handling the complexity of Spare Parts Inventory Planning, which poses unique challenges and has special requirements.