Spare parts inventory management is the process of making decisions about the stocking, control, and use of spare parts that support physical assets and equipment.
Its objective is to balance operational risk, service requirements, and inventory investment.
Why Spare Parts Are Different
Unlike retail inventory:
* Demand is often irregular.
* Demand can be extremely low.
* Consequences of stockouts can be severe.
* Lead times can be long.
* Obsolescence risk can be significant.
These characteristics mean that traditional inventory techniques are often unreliable when applied directly to spare parts.
Core Decisions
What to stock
How much to stock
Where to stock
When to reorder
When to repair
When to dispose
Explore the Spare Parts Decision Framework
Related Concepts
Criticality Analysis
Inventory Optimization
Obsolescence Management
Reliability
Asset Management
Explore our Spare Parts Knowledge Hub
About the Author
This definition is provided by Phillip Slater, founder of SparePartsKnowHow.com and author of multiple books on spare parts inventory management.