Spare Part Stock Modeling and Cost Optimization

Turpela J, Lehtinen T, Ramentor Oy

10th World Congress on Engineering Asset Management (WCEAM 2015)
26 March, 2016

“Modeling and planning the spare part item stock is a quite complex, but utmost rewarding task regarding the operational excellence of a manufacturing industry company. The challenge with the design is derived from multi-variable optimization tasks, including e.g. consumption rate of an item, division of stocking costs, and potential shortage costs. This applies especially in case of new spare part item with no history data for defining the consumption rate.”