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Determination Inventory Level for Aircraft Spare Parts Using Continuous Review Model

Author

Listed:
  • Azizah Aisyati

    (Department of Industrial Engineering Sebelas Maret University Jl. Ir Sutami 36A, Surakarta, Indonesia)

  • Wakhid Ahmad Jauhari

    (Department of Industrial Engineering Sebelas Maret University Jl. Ir Sutami 36A, Surakarta, Indonesia)

  • Cucuk Nur Rosyidi

    (Department of Industrial Engineering Sebelas Maret University Jl. Ir Sutami 36A, Surakarta, Indonesia)

Abstract

In this paper, we determine ordering quantity and reorder point for aircraft consumable spare parts. We use continuous review model to propose a spare part inventory policy that can be used in a aircraft maintenance company in Indonesia. We employ ABC classification system to categorize the spare parts based on their dollar contribution. We focus our research on managing the inventory level for spare parts on class A and B which commonly known as important classes. The result from the research indicates that the continuous review policy gives a significant amount of saving compared to an existing policy used by the company.

Suggested Citation

  • Azizah Aisyati & Wakhid Ahmad Jauhari & Cucuk Nur Rosyidi, 2013. "Determination Inventory Level for Aircraft Spare Parts Using Continuous Review Model," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 4(1), pages 1-12, February.
    • Handle: RePEc:aml:intbrm:v:4:y:2013:i:1:p:1-12
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    File URL: https://www.cscjournals.org/manuscript/Journals/IJBRM/Volume4/Issue1/IJBRM-133.pdf
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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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Omar Besbes & Adam N. Elmachtoub & Yunjie Sun, 2020. "Pricing Analytics for Rotable Spare Parts," Interfaces, INFORMS, vol. 50(5), pages 313-324, September.

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    More about this item

    Keywords

    Inventory; Continuous Review; Order Quantity; Reorder Point; ABC Classification System;
    All these keywords.

    JEL classification:

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

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