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Study for Determining an Inventory Level of Spare Parts according to System Utilization  

Jeong, Suk-Jae (Dept of Industrial & Information Systems Engineering, Yonsei University)
Han, Sung-Hoon (Dept of Industrial & Information Systems Engineering, Yonsei University)
Kim, Kyung-Sup (Dept of Industrial & Information Systems Engineering, Yonsei University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.30, no.3, 2007 , pp. 117-126 More about this Journal
Abstract
It has been a major issue to repair the broken system quickly for improvement of productivity and utilization. Generally, high utilization of system requires the high amount of spare parts in inventory and inventory cost. Therefore, it is necessary to determine the proper amount of inventory with regard to utilization of system. This study designs a methodology for determining the proper amount of inventory level in a two-echelon spare parts distribution system. The requirements are to satisfy proper customer demands at a distribution center and to maintain over the utilization of the whole system at customers. This methodology minimizes total inventory investment at a distribution center and customers.
Keywords
Inventory; Spare Parts; Operating Rate;
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