Algorithm for MRO materials management

An algorithm for MRO materials management improvement and automation is presented. The mean monthly demand and its standard deviation from the actual monthly demand are calculated by exponential smoothing formulae. The reorder point is calculated from these data, with regard to the production loss and the possibility of repair in case of material shortage and the order and lead time delivery frequency. The economic order quantity is calculated with the formula Q=FM^E/P’(¹’-^E’), derived from an exponential order cost to order value relation. Finally an order proposal may be edited automatically.