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Periodic Review Model for Determining Inventory Policy for Aircraft Consumable Spare Parts

Author

Listed:
  • Azizah Aisyati

    (Industrial Engineering Department, Sebelas Maret University, Indonesia)

  • Wakhid Ahmad Jauhari

    (Industrial Engineering Department, Sebelas Maret University, Indonesia)

  • Cucuk Nur Rosyidi

    (Industrial Engineering Department, Sebelas Maret University, Indonesia)

Abstract

This research is conducted to develop inventory policy of aircraft consumable spare parts which are needed on aircraft maintenance activity . In this research, we used periodic review model to determine the optimal policy of aircraft spare parts inventory. By using the periodic review model, we find optimal period of inventory review and maximum level of inventory. The optimal decision is determined based on the minimum total cost. We have classified consumable spare parts using ABC method to categorize them based on their dollar contribution and demand frequency. Therefore in this research, we focus on managing the inventory level for spare parts on class C. The result from this study shows that the proposed periodic review policy result in lower total inventory cost compared the the company policy. The proposed policy gives an average saving 35.38 %.

Suggested Citation

  • Azizah Aisyati & Wakhid Ahmad Jauhari & Cucuk Nur Rosyidi, 2014. "Periodic Review Model for Determining Inventory Policy for Aircraft Consumable Spare Parts," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 5(3), pages 41-51, June.
    • Handle: RePEc:aml:intbrm:v:5:y:2014:i:3:p:41-51
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    References listed on IDEAS

    as
    1. Porras, Eric & Dekker, Rommert, 2008. "An inventory control system for spare parts at a refinery: An empirical comparison of different re-order point methods," European Journal of Operational Research, Elsevier, vol. 184(1), pages 101-132, January.
    2. Chang, Pao-Long & Chou, Ying-Chyi & Huang, Ming-Guang, 2005. "A (r,r,Q) inventory model for spare parts involving equipment criticality," International Journal of Production Economics, Elsevier, vol. 97(1), pages 66-74, July.
    3. Strijbosch, L.W.G. & Heuts, R.M.J. & van der Schoot, E.H.M., 1998. "Improved Spare Parts Inventory Management : A Case Study," Discussion Paper 1998-135, Tilburg University, Center for Economic Research.
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    More about this item

    Keywords

    Inventory; Spare Part; Periodic Review; ABC Method.;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

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