Abstract
Purpose: This paper focuses on the improvement of the inventory management of repairable parts of the airline company Air Nostrum. The company uses a common sales replacement policy to manage their repairable parts and the same target fill rate for every item. This target is very high in order to assure a high availability of the aircrafts, dealing also to a high inventory value.
Highlights
Introduction and literature reviewRepairable parts are a kind of spare part that may be repaired and eventually used again
If the average target fill rate is reached the procedure stops, else step 2 is repeated and the fill rate cost index (FCI) limit adjusted. This procedure has been applied to the historical dataset of failures in Airnostrum beginning with a 1% increase of the average fill rate per each Euro added to the inventory value (FCI = 0.01)
A simple but effective heuristic has been proposed in this paper to reduce the inventory value subject to an average fill rate constraint in a multi-item context
Summary
Repairable parts are a kind of spare part that may be repaired and eventually used again. More recently (Teunter, Babai & Syntetos, 2010) have considered the classification from an inventory costs perspective and have proposed a cost criterion rank (D · b)(Q · h) being b the shortage cost, h the unit holding cost and Q the order size This criterion includes a measure of item criticality, a factor considered by some authors especially for spare parts management, in the form of stockout cost.
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