Study On Spare Parts Inventory Management Of B Machine Tool Company

Spare parts inventory control plays an important role in the supply chain of laser cutting machine and bending machine, which contributes to lowering the costs and improving the service. The company B in shanghai is a representative of Swiss group in China. Company A, as a supplier of company B and a manufactory plant, is also a subsidiary of the Swiss group. The B Company’s sales volume is growing at a rate of 20% from 2008 to 2011, but it has a downward trend since 2012. Under this situation, Company B has a lot of problems in forecasting their demands for the spare parts and also in the inventory management.The declining selling performance of machine tool means that the requirements for spare parts sales and inventory cost should be improved and there are a number of problems which is about inventory control in the company B. Three questions have been discussed and analyzed in this thesis. The third chapter expounds the problems that the classification of spare parts don’t have specific industrial characteristics, that the company has a high stock and single prediction, and that the inventory management of B has not considered the supplier’s inventory. In the fourth chapter, using Bayesian forecasting method to forecast the stochastic discrete spare parts and using exponential smoothing and moving average method to confirm the continuous parts. For easy calculation, this paper writes the corresponding program. The fifth chapter introduces the inventory control plan. The strategy for discrete parts is to negotiate with supplier about the purchase plan according to predicted situation. Based on the monopole situation like company B, the strategy for confirmed spare parts is to using the time-varying demand model to prepare the procurement plans. Considering to supplier’s inventory, the strategy discusses the relation that is multi-level inventory between company B and its supplier. Then arranging their procurement plan at the same time to achieve the optimization of the total inventory cost. Finally, this thesis uses the real data of the company to make an example analysis.To sum up, this thesis combines with the actual situation and has a certain reference value for company B to solve the spare parts inventory problems.