A special inventory problem is presented: aircraft spares that are repaired and returned to spares, called rotable inventory. Rotable inventory is not consumed so does not change in the medium term, but is rotated through operational, maintenance and stock phases. The objective for inventory performance is fleet Service Level (SL), which effects aircraft dispatch performance. A model is proposed where the fleet SL drives combined stock levels such that cost is optimized. By holding greater numbers of lower-cost items and holding lower levels of more expensive items, it is possible to achieve substantial cost savings while maintaining performance. This approach is shown to be an advance over the current literature and is tested with case data, with conclusive results.
|Title of host publication||Service parts management|
|Subtitle of host publication||demanding forecasting and inventory control|
|Editors||Nezih Altay, Lewis A. Litteral|
|Place of Publication||London (UK)|
|Number of pages||14|
|Publication status||Published - 28 Mar 2011|