A Flexible Policy Using Failure Rate to Forecast the Repairable Spare Part Stock out Time

Hui Ming Wee, Kuo Hsing Wu, Daryanto Yosef
2017 Proceedings of the 2017 International Conference on Management Science and Management Innovation (MSMI 2017)   unpublished
Since spare part availability impacts the fixing rate for defective device, maintaining an acceptable spare part availability level is critical for improving customer satisfaction level. Spare part demand is typically unpredictable due to varying service requests. Most companies set a fix period for maintenance and repair. This fixed period of repair model is a waste if the device is in a good condition. To improve the system, this study proposes a flexible return policy using failure rate to
more » ... g failure rate to forecast the possible stock out time point. Once the specific point is found, the least repair turnaround time (TAT) is set for defective spare part shipment. By this mean, the repaired spare part will arrive at the warehouse to replenish the stock. Similar scenario also applies to the out of warranty period for the dropping service demand. For practical industrial application, this model also considers the last time buy and the defective spare part scrap rate practices.
doi:10.2991/msmi-17.2017.35 fatcat:yxx6qm5za5ccnkdftegksmr62i