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

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  • 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
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    References listed on IDEAS

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    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.
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    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.

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