Utilizing industrial engineering methods and strategies to determine optimal inventory levels of spare parts: A review
1 Industrial Engineering program, Department of Mechanical Engineering, College of Engineering, Taif University, P.O. Box 11099, Taif 21944, Saudi Arabia.
2 Department of Materials Engineering, Faculty of Engineering, Zagazig University, P.O. Box 44519, Zagazig, Egypt.
Review Article
Global Journal of Engineering and Technology Advances, 2024, 20(01), 045–054.
Article DOI: 10.30574/gjeta.2024.20.1.0123
Publication history:
Received on 05 June 2024; revised on 11 July 2024; accepted on 14 July 2024
Abstract:
A shortage of maintenance spare parts can lead to significant problems for the company, and sometimes even result in the disruption of operations. On the other hand, excess inventory will lead to increased storage costs and financial losses, as the monetary value over time diminishes due to financial inflation. The aim of this study is to determine the industrial engineering methods and strategies used to improve the effective management of spare parts inventory. To address the challenges and improve the efficient management of spare parts inventory, this study will review various industrial engineering techniques. These may include demand forecasting methods, inventory optimization models, supply chain management strategies, and data analysis techniques. By implementing these approaches, the company aims to achieve a balance between inventory levels and demand variability, thereby minimizing stockouts, reducing excess inventory, and optimizing financial resources. This will lead to improved operational efficiency, cost savings, and increased customer satisfaction by ensuring timely availability of spare parts for maintenance.
Keywords:
Spare parts inventory; Six Sigma DMAIC; ABC classification; Intermittent demand forecasting; Bootstrap method; Supply Chain Management
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