Spare parts classification and inventory management: a case study

Bacchetti, A; Plebani, R; Saccani, N; Syntetos, A

Abstract

The aim of this paper is to propose and discuss a hierarchical multi-criteria spare parts classification method developed for inventory management purposes and tested through an intensive case study in an Italian household appliances manufacturing company. In particular, the classification scheme under concern is built on the basis of several key dimensions in an almost hierarchical fashion, resulting in 12 different classes of spare parts, for which varying forecasting and inventory methods are proposed and tested. The results of our simulation study demonstrate the reduction of the total logistics costs by about 20% whilst the service target level is achieved for each of the classes. Even more importantly, the proposed approach is simple and straightforward enough to be understood by company managers, thus increasing the probability of its adoption (in the same or similar form) in other real world settings.

• Journal Article Type: Article
• Deposit Date: Nov 30, 2011
• Publicly Available Date: Apr 5, 2016
• Journal: Salford Business School Working Papers Series
• Print ISSN: 1751-2700
• Peer Reviewed: Not Peer Reviewed
• Volume: 408/11
• Additional Information: Funders : CARIPLO foundation; Projects : ASAP Service Management Forum (www.asapsmf.org)