IDEAS home Printed from https://ideas.repec.org/p/ems/eureir/1830.html
   My bibliography  Save this paper

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

Author

Listed:
  • Trimp, M.E.
  • Sinnema, S.M.
  • Dekker, R.
  • Teunter, R.H.

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.

Suggested Citation

  • Trimp, M.E. & Sinnema, S.M. & Dekker, R. & Teunter, R.H., 2004. "Optimise initial spare parts inventories: an analysis and improvement of an electronic decision tool," Econometric Institute Research Papers EI 2004-52, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:1830
    as

    Download full text from publisher

    File URL: https://repub.eur.nl/pub/1830/ei200452.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kennedy, W. J. & Wayne Patterson, J. & Fredendall, Lawrence D., 2002. "An overview of recent literature on spare parts inventories," International Journal of Production Economics, Elsevier, vol. 76(2), pages 201-215, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van Jaarsveld, Willem & Dekker, Rommert, 2011. "Spare parts stock control for redundant systems using reliability centered maintenance data," Reliability Engineering and System Safety, Elsevier, vol. 96(11), pages 1576-1586.
    2. van Jaarsveld, W.L. & Dekker, R., 2010. "Integrating Reliability Centered Maintenance and Spare Parts Stock Control," Econometric Institute Research Papers EI 2010-16, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    3. van Jaarsveld, W.L. & Dekker, R., 2009. "Risk-based stock decisions for projects," Econometric Institute Research Papers EI 2009-02, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dombi, József & Jónás, Tamás & Tóth, Zsuzsanna Eszter, 2018. "Modeling and long-term forecasting demand in spare parts logistics businesses," International Journal of Production Economics, Elsevier, vol. 201(C), pages 1-17.
    2. Juha Lukkarinen & Jukka Majava, 2020. "Supplies Inventory Management in a Corporation Context: A Case Study," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 9(2), pages 169-184.
    3. Van der Auweraer, Sarah & Boute, Robert N. & Syntetos, Aris A., 2019. "Forecasting spare part demand with installed base information: A review," International Journal of Forecasting, Elsevier, vol. 35(1), pages 181-196.
    4. Vliegen, I.M.H. & van Houtum, G.J., 2009. "Approximate evaluation of order fill rates for an inventory system of service tools," International Journal of Production Economics, Elsevier, vol. 118(1), pages 339-351, March.
    5. Xian Zhao & Jing Zhang & Xiaoyue Wang, 2019. "Joint optimization of components redundancy, spares inventory and repairmen allocation for a standby series system," Journal of Risk and Reliability, , vol. 233(4), pages 623-638, August.
    6. Kleber, Rainer & Zanoni, Simone & Zavanella, Lucio, 2011. "On how buyback and remanufacturing strategies affect the profitability of spare parts supply chains," International Journal of Production Economics, Elsevier, vol. 133(1), pages 135-142, September.
    7. Liu, Xinbao & Yang, Tianji & Pei, Jun & Liao, Haitao & Pohl, Edward A., 2019. "Replacement and inventory control for a multi-customer product service system with decreasing replacement costs," European Journal of Operational Research, Elsevier, vol. 273(2), pages 561-574.
    8. Krikke, H.R. & van der Laan, E., 2009. "Last Time Buy and Control Policies With Phase-Out Returns : A Case Study in Plant Control Systems," Discussion Paper 2009-66, Tilburg University, Center for Economic Research.
    9. van Jaarsveld, Willem & Dollevoet, Twan & Dekker, Rommert, 2015. "Improving spare parts inventory control at a repair shop," Omega, Elsevier, vol. 57(PB), pages 217-229.
    10. Rahimi-Ghahroodi, S. & Al Hanbali, A. & Vliegen, I.M.H. & Cohen, M.A., 2019. "Joint optimization of spare parts inventory and service engineers staffing with full backlogging," International Journal of Production Economics, Elsevier, vol. 212(C), pages 39-50.
    11. Zhu, Sha & Dekker, Rommert & van Jaarsveld, Willem & Renjie, Rex Wang & Koning, Alex J., 2017. "An improved method for forecasting spare parts demand using extreme value theory," European Journal of Operational Research, Elsevier, vol. 261(1), pages 169-181.
    12. Wang, Wenbin & Syntetos, Aris A., 2011. "Spare parts demand: Linking forecasting to equipment maintenance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1194-1209.
    13. Araceli Zavala & David Nowicki & Jose Emmanuel Ramirez-Marquez, 2019. "Quantitative metrics to analyze supply chain resilience and associated costs," Journal of Risk and Reliability, , vol. 233(2), pages 186-199, April.
    14. J P J van Kooten & T Tan, 2009. "The final order problem for repairable spare parts under condemnation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(10), pages 1449-1461, October.
    15. Wang, Wenbin, 2011. "A joint spare part and maintenance inspection optimisation model using the Delay-Time concept," Reliability Engineering and System Safety, Elsevier, vol. 96(11), pages 1535-1541.
    16. Vliegen, I.M.H. & Kleingeld, P.A.M. & van Houtum, G.J., 2010. "Separate tools or tool kits: An exploratory study of engineers' preferences," International Journal of Production Economics, Elsevier, vol. 125(1), pages 173-184, May.
    17. Olde Keizer, Minou C.A. & Teunter, Ruud H. & Veldman, Jasper, 2017. "Joint condition-based maintenance and inventory optimization for systems with multiple components," European Journal of Operational Research, Elsevier, vol. 257(1), pages 209-222.
    18. Minjae Park & Ki Mun Jung & Dong Ho Park, 2016. "Optimal warranty policies considering repair service and replacement service under the manufacturer’s perspective," Annals of Operations Research, Springer, vol. 244(1), pages 117-132, September.
    19. Z S Hua & B Zhang & J Yang & D S Tan, 2007. "A new approach of forecasting intermittent demand for spare parts inventories in the process industries," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(1), pages 52-61, January.
    20. F R Johnston & E A Shale & S Kapoor & R True & A Sheth, 2011. "Breadth of range and depth of stock: forecasting and inventory management at Euro Car Parts Ltd," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(3), pages 433-441, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ems:eureir:1830. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RePub (email available below). General contact details of provider: https://edirc.repec.org/data/feeurnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.