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Spare parts management for irregular demand items

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  • Costantino, Francesco
  • Di Gravio, Giulio
  • Patriarca, Riccardo
  • Petrella, Lea

Abstract

Inventory optimization of high-value spare parts may generate a significant reduction of cost to allow a better allocation of resources in maintenance management. Sherbrooke's METRIC (Multi Echelon Technique for Recoverable Item Control) is the most common method to define an overall optimization process adopting a system-approach. Its main assumption consists of adopting a Poisson distribution to describe the demand pattern of the items. However, many studies proved that in high-availability systems, high-cost spare parts often follow irregular demand patterns, with very frequent zero-demand values.

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  • Costantino, Francesco & Di Gravio, Giulio & Patriarca, Riccardo & Petrella, Lea, 2018. "Spare parts management for irregular demand items," Omega, Elsevier, vol. 81(C), pages 57-66.
    • Handle: RePEc:eee:jomega:v:81:y:2018:i:c:p:57-66
    DOI: 10.1016/j.omega.2017.09.009
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