Spare parts management at complex technology-based organizations: An agenda for research

Abstract

This paper explores the applicability of sophisticated models and techniques for spare parts inventory management within a highly technology-driven environment, viz. the Royal Netherlands Navy. In particular, we discuss the structure of the so-called VARI-METRIC models, a set of tools that has been designed for decision support in spare parts management, initially in a military organization. These tools aim at a high availability of complete technical systems, as opposed to more classical inventory management approaches, that are primarily directed towards a high availability of individual items. Unfortunately, the VARI-METRIC models suffer from a series of limiting assumptions that are not satisfied in most technology-based large organizations. We identify these shortcomings and suggest a research agenda to deal with these issues. Important extensions include the study of capacitated systems, and the study of hybrid product structures, consisting of both repairable and consumable parts. When consumption and condemnation occur (i.e. not every broken part can be repaired), the operational availability of systems during their exploitation period becomes a function of the allocated resupply budgets. This highly important field, relating issues such as maintenance policies, spare parts repair and resupply, to concepts of life cycle management, seems unexplored so far.