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Estimating obsolescence risk from demand data to enhance inventory control--A case study

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  • van Jaarsveld, Willem
  • Dekker, Rommert

Abstract

In this paper obsolescence of service parts is analyzed in a practical environment. Based on the analysis, we propose a method that can be used to estimate the risk of obsolescence of service parts, which is subsequently used to enhance inventory control for those parts. The method distinguishes groups of service parts. For these groups, the risk of obsolescence is estimated using the behavior of similar groups of service parts in the past. The method uses demand data as main information source, and can therefore be applied without the use of an expert's opinion. We will give numerical values for the risk of obsolescence obtained with the method, and the effects of these values on inventory control will be examined.

Suggested Citation

  • van Jaarsveld, Willem & Dekker, Rommert, 2011. "Estimating obsolescence risk from demand data to enhance inventory control--A case study," International Journal of Production Economics, Elsevier, vol. 133(1), pages 423-431, September.
    • Handle: RePEc:eee:proeco:v:133:y:2011:i:1:p:423-431
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    Cited by:

    1. Hekimoğlu, Mustafa & Karlı, Deniz, 2023. "Modeling repair demand in existence of a nonstationary installed base," International Journal of Production Economics, Elsevier, vol. 263(C).
    2. Moon, Seongmin & Hicks, Christian & Simpson, Andrew, 2012. "The development of a hierarchical forecasting method for predicting spare parts demand in the South Korean Navy—A case study," International Journal of Production Economics, Elsevier, vol. 140(2), pages 794-802.
    3. Zhu, Sha & Jaarsveld, Willem van & Dekker, Rommert, 2020. "Spare parts inventory control based on maintenance planning," Reliability Engineering and System Safety, Elsevier, vol. 193(C).
    4. Pinçe, Çerağ & Turrini, Laura & Meissner, Joern, 2021. "Intermittent demand forecasting for spare parts: A Critical review," Omega, Elsevier, vol. 105(C).
    5. Zhu, Sha & van Jaarsveld, Willem & Dekker, Rommert, 2022. "Critical project planning and spare parts inventory management in shutdown maintenance," Reliability Engineering and System Safety, Elsevier, vol. 219(C).

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