Article (Scientific journals)
Forecasting spare part demand using service maintenance information
van der Auweraer, Sarah; Boute, Robert
2019In International Journal of Production Economics, 213, p. 138-149
Peer reviewed


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Keywords :
inventory management; forecasting; spare parts; service maintenance; installed base
Abstract :
[en] We focus on the inventory management of critical spare parts that are used for service maintenance. These parts are commonly characterised by a large variety, an intermittent demand pattern and oftentimes a high shortage cost. Specialized service parts models focus on improving the availability of parts whilst limiting the investment in inventories. We develop a method to forecast the demand of these spare parts by linking it to the service maintenance policy. The demand of these parts originates from the maintenance activities that require their use, and is thus related to the number of machines in the field that make use of this part (known as the active installed base), in combination with the part's failure behaviour and the maintenance plan. We use this information to predict future demand. By tracking the active installed base and estimating the part failure behaviour, we provide a forecast of the distribution of the future spare parts demand during the upcoming lead time. This forecast is in turn used to manage inventories using a base-stock policy. Through a simulation experiment, we show that our method has the potential to improve the inventory-service trade-off, i.e., it can achieve a certain cycle service level with lower inventory levels compared to the traditional forecasting techniques for intermittent spare part demand. The magnitude of the improvement increases for spare parts that have a large installed base and for parts with longer replenishment lead times.
Disciplines :
Production, distribution & supply chain management
Author, co-author :
van der Auweraer, Sarah ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Boute, Robert
External co-authors :
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Title :
Forecasting spare part demand using service maintenance information
Publication date :
Journal title :
International Journal of Production Economics
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Volume :
Pages :
Peer reviewed :
Peer reviewed
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since 13 January 2020


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