Industries hold spare parts inventory for equipment repairs and support purpose only. It is different from other types of inventory that is used in production for conversion raw material to finished goods. This distinction keeps spare parts inventory apart from other types of inventory. It suggests a separate inventory system for spare parts inventory to control critical and valuable items stringently. Spare parts inventory is important for carrying out timely maintenance and bringing broken parts in order. Out of stock situation of spare parts can disrupt the production process and may cause financial loss for the industry.
In this study, we are presenting a case study of inventory management of technical store of a printing industry comprising …show more content…
These techniques identify the items requiring stringent supervision and management control.
The manufacturing organizations, which hold spare parts inventory, usually classify it using different criteria and service levels for each category of items (Syntetos et al., 2009). The commonly used technique of inventory classification is ABC analysis, which divides items on the basis of its values and rate of consumption into A, B and
C categories. ABC analysis measures the importance of items on the basis of its values and annual consumption.
ABC analysis suggests different level of control for the items of different categories. It placed strict control on the items having highest value and rate of consumption. The management focuses on parts that account for the highest annual expenditure of inventory (Onwubolu and
Dube, 2006). In ABC analysis, generally but not mandatorily, items of category A include approximately 5 to 20 percent of all items of inventory, accounting for approximately 50-80 percent of annual
In this study, we are presenting a case study of inventory management of technical store of a printing industry comprising …show more content…
These techniques identify the items requiring stringent supervision and management control.
The manufacturing organizations, which hold spare parts inventory, usually classify it using different criteria and service levels for each category of items (Syntetos et al., 2009). The commonly used technique of inventory classification is ABC analysis, which divides items on the basis of its values and rate of consumption into A, B and
C categories. ABC analysis measures the importance of items on the basis of its values and annual consumption.
ABC analysis suggests different level of control for the items of different categories. It placed strict control on the items having highest value and rate of consumption. The management focuses on parts that account for the highest annual expenditure of inventory (Onwubolu and
Dube, 2006). In ABC analysis, generally but not mandatorily, items of category A include approximately 5 to 20 percent of all items of inventory, accounting for approximately 50-80 percent of annual