Objectives and search methodology The aim of this research is to identify and collect the literature currently available on spare parts inventory management, and to provide a critical review, in order to outline a state of the art of this research field, and to point out directions for future research.
On the one hand, intra-firm inventory management flexibilities enable a firm to have good control on stock and keep a high level of availability to customer demands, thus, by leveraging the service-cost trade off relationship, the organization can keep a reasonable level of raw material inventory, work-in-process inventory, and finished goods inventory and reduce inventory waste simultaneously.
The keywords were directly associated to the spare parts inventory topic e. It was edited to remove any duplicate records, and the titles were checked to ensure relevance to the review. Initially, a very broad selection was made starting from an existent database of a previous research carried out by the authors to cover a diverse range of publications e.
The transaction motive occurs when there is a need to hold stock to meet production and sales requirements.
In addition, inventory service flexibility can also be as pursuing high inventory utilization while reducing waste, because an important indication of management efficiency and effectiveness is inventory utilization Caplice and Sheffi, We can argue that spare parts inventory management is still and increasingly in the research agenda of scholars in Operations Management and Operations Research.
This shows the interest in academia in advancing the theoretical knowledge in this field. This gives the buyer a chance to purchase material in excess of current need at a price that is lower than it would be if the buyer waited until after the price increase occur kuku, Purchase of large quantities of goods often times attracts a price discount to the firms.
Examples of publications that are out the scope of this review are those such as Downing et al. Running Operations In order to manufacture a product a manufacturer must have certain purchased items raw materials component or subassemblies.