Spare Parts Inventory Management: A Literature Review

Abstract

Spare parts are held as inventory to support product maintenance in order to reduce downtime and extend the lifetime of products. Recently, spare parts inventory management has been attracting more attention due to the “right-to-repair” movement which requires that manufacturers provide sufficient spare parts throughout the life-cyle of their products to reduce waste so as to achieve sustainability. In this review, 148 papers regarding spare parts inventory management published from 2010 to 2020 are examined. The studies are classified based on two groups of perspectives. The first group includes the characteristics of spare parts, products, inventory systems, and supply chains, while the second group focuses on the characteristics of research methodologies and topics in the reviewed studies. The novelty of this literature review is three-fold. Firstly, we focus on analyzing the supply chain structure of different inventory networks for managing spare parts. Secondly, we classify the current literature based on analytics techniques, i.e., descriptive analytics, predictive analytics, and prescriptive analytics. Finally, the research gaps in this field are discussed from the perspective of reverse logistics, consumer durable goods, inventory network structure and policy, spare parts demand pattern modeling, and big data analytics.

Information System Supply Chain Management with FIFO Pertetual Method

“…This method uses inventory cards in the calculation of inventory costing. Cost of Goods Sold (HPP) is calculated every time a sale occurs by determining the cost flow [12].…”

BORA: Bayesian Optimization for Resource Allocation

“…Optimal (sequential) resource allocation is a well known problem in operation research, with traditional examples such as inventory management, portfolio allocation, etc. [1,2,3,4]. Some approaches are related to stochastic optimization (e.g., multi-period and multi-stage stochastic optimization [5,6]), but the most relevant literature for this paper is from Multi Armed Bandit (MAB) [7,8], specifically the semi-bandit feedback (SBF) [9,10,11,12,13,14].…”

“…) , and is the transpose symbol. The GP's predictive uncertainty is the posterior standard deviation, that is σ(x) = σ(x) 2 .…”

Two-echelon inventory location model with response time requirement and lateral transshipment

“…They imposed a requirement on expected time between the arrival and fulfillment of demand and created efficient algorithms to determine optimal stock level for both echelons. [10] recently presented a review of 148 research works spanning 11 years (2010-2020). They analyzed various spare parts inventory systems and classified existing literature based on analytic procedure.…”