Reduction of spare parts inventory through combined analysis technique a case study in a public sector company in India

Abstract

This paper addresses the inventory control which is one of the most important problems in operations research. Different types of inventory are addressed in the literature. Among them, spare parts inventory which play crucial role are considered in this research. Different approaches were proposed by the researchers in past literature to tackle the inventory problems. The spare parts inventory problems are solved by using a new technique which is called combined analysis technique (CAT) in this paper. In this CAT, different inventory control techniques such as ABC analysis, VED analysis, FSN analysis and SDE analysis are combined with different weightage factors to keep balance between inventory holding cost and stock-outs. Data are collected from a leading public sector company located in the southern part of Tamilnadu, India and the CAT is carried out to bear out the effectiveness of the proposed technique.