Integrated Framework for Spare Parts Inventory Control Perspective to Petroleum and Fertilizer Industries across India and Gulf

Abstract

Studies reveal that there is still a need for a critical evaluation policy and practical analytical newlineindustrial base models for managing spare parts stock in mega industries like petroleum, newlinefertilizer, aluminum manufacturing and power plants. Presently, models for spare parts newlineinventory control provide a very limited scope of practical use for such mega manufacturing newlinesectors. This is due to managing the spare parts stock of large variety of functional equipment newlinewith varying frequencies of failure and maintenance requirements. Normally, warehouses of newlinesuch industries have cataloged spare parts items ranging from 30000 to 100000 and newlineassociated cost from US$ 200 to US$ 400 million. newlineThe conventional practice of stocking spare parts inventory, as a thumb rule is based on a newlinemajor categorization of equipment, which normally covered as rotating and stationary newlineirrespective of their functional criticality. This thumb rule philosophy leads to an overlooking newlineof the varying needs and characteristics of spare parts even in similar categories of equipment. newlineThis practice keeps on increasing the stock levels of spare parts inventory towards the higher newlineside and considerably total associated cost. Also, recent researches and industry practice of newlinecontrolling spare parts uses selective control techniques applicable on individual departmental newlinefunctions have limitations of integrating parameters like criticality factor, consumption newlinefrequency, replenishment lead-time, unit price and maintenance frequency. Due to this, items newlineare overstocked several times with considerations of exaggerated risk with higher safety stock newlineduring their inventory cycle. On the other hand, some of the critical spare parts are not newlinerecommended by original equipment manufacturer and may lead to production delay and/or newlinenonproductive due to unavailability of them. newline