Storage Strategy

Nowadays it is very common to store expensive and slowly consumed spare parts to supplier’s stocks. In that case the supplier commits itself to supply needed parts within given time.

In order to compare supplier storage to conventional we have to calculate expenses of the present storage strategy. In calculations we should use StockOptim application that can simulate functioning of a spare part stock. In this case needed inputs for the application are spare part consumption, supplier’s information and different costs (eg. shortage expenses).

After simulation of the present storage strategy we can explore the benefits from switching to supplier stock strategy. This can be done by changing delivery times and storage costs to correspond the new strategy. In the new strategy delivery times are only a fraction from the present but on the other hand storing in the supplier end increases storage costs.

After simulation of the new strategy we can compare which of the strategies (the old or the new) is more inexpensive to impelement.