Research On Inventory Pooling Model Of Aviation Material

An efficient and scientific management of aviation material is vital for an airline. Under traditional self-management method, excessive storage often leads to low turnover rate and high inventory fund. Inventory pooling of aviation spare parts has a great advantage by the scale effect.In this paper, an inter-airline model of aviation material inventory pooling is built. The minimum required inventory and cost are calculated under the premise that the service level of the supply of all the airlines stay unchanged. Then several cost allocation methods are studied, under which the profits of each airlines are obtained when compared to self-management method.An aviation material supply model with a third-party management provider is then developed. The objective function of this model is the total steady state cost and the constraint is the unchanged guarantee rates of aviation material of each separate airline. Variation of the guarantee rates required by different airlines is also taken into consideration. Similarly, the total amount of storage needed and the corresponding cost to supply all the line maintenance are calculated and compared.This paper systematically discusses the inventory pooling method of aviation material by means of mathematical modeling and provides a new management thought to airlines.