Developing Inventory Policy for Aircraft Spare Parts using Periodic Review Model

Abstract

This research is conducted to develop inventory policy of aircraft consumable spare parts which are needed on aircraft maintenance activity. In this research, we used periodic review model to determine the optimal policy of aircraft spare parts inventory. By using the periodic review model, we find optimal period of inventory review and maximum level of inventory.  The optimal decision is determined based on the minimum total cost. We have classified consumable spare parts using ABC method to categorize them based on their dollar contribution and demand frequency. Therefore in this research, we focus on managing the inventory level for spare parts on class C. The result from this study shows that the proposed periodic review policy result in lower total inventory cost compared the the company policy. The proposed policy gives an average saving 35.38 %.

Keywords: Inventory, spare part, periodic review, inventory review, maximum level, ABC method.