| Article ID: | iaor19942117 |
| Country: | India |
| Volume: | 9 |
| Issue: | 3 |
| Start Page Number: | 339 |
| End Page Number: | 347 |
| Publication Date: | Sep 1993 |
| Journal: | International Journal of Management and Systems |
| Authors: | Ronen David |
| Keywords: | maintenance, repair & replacement, manufacturing industries, queues: applications |
A manufacturer of high-tech equipment with hundreds of installations in Europe and North America maintains a centralized stock of expensive repairable spare parts at the manufacturing plant where repairs to failed parts are also done. A stockout of a spare part causes a major disruption to the production line of the machines. A queueing model and marginal analysis are used to determine the required level of spare parts inventory, and practical considerations are discussed.