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A spare parts stocking policy based on equipment criticality

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  • Dekker, R.
  • Kleijn, M. J.
  • de Rooij, P. J.

Abstract

Demand for spare parts can sometimes be classified into critical and non-critical demand, depending on the criticality of the equipment in which it is installed. To effectively handle this situation in spare parts inventory control, we propose a stocking policy where some of the stock is reserved for critical demand. For Poisson demand and a lot-for-lot stocking policy with positive replenishment leadtime, approximations of the service levels for both classes of demand are derived, and verified by simulation. Finally, a numerical example is presented to illustrate the advantages of using the proposed policy.
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Suggested Citation

  • Dekker, R. & Kleijn, M. J. & de Rooij, P. J., 1998. "A spare parts stocking policy based on equipment criticality," International Journal of Production Economics, Elsevier, vol. 56(1), pages 69-77, September.
    • Handle: RePEc:eee:proeco:v:56-57:y:1998:i:1:p:69-77
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    References listed on IDEAS

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    5. Richard V. Evans, 1968. "Sales and Restocking Policies in a Single Item Inventory System," Management Science, INFORMS, vol. 14(7), pages 463-472, March.
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