A Classification Model for Inventory Management of Spare Parts and its Application

Abstract

This paper presents a classification model and its application for inventory management of spare parts based on T.L.Saaty's Analytic Hierarchy Process (AHP). A three level hierarchy has been structured In which five key criterion, including residual risk, low throughput, annual usage capacity, lead time and substitution, and four alternatives for each criterion are identified to classify spare parts as A (very important), B (important) and C (weak important). An example of classification of dry gas seal is introduced and this model has been used in the inventory management of spare parts in TAPLINE.