TRAX MANUALS > Inventory > Inventory Module > Inventory, Update Menu > Inventory Optimization (Expendable)

Inventory Optimization (Expendable)

When a repairable item on an aircraft becomes defective, it is removed and replaced by another item from the spare stock. The defective part is then sent to a maintenance station for repair. If the station does not have a spare part in stock, the aircraft will remain on ground and will be delayed until an incoming flight brings a replacement part from another maintenance station. Spare inventory is placed at line stations to decrease time delays due to unanticipated failures, and is placed also at the maintenance stations to quickly replenish remote station allotments while their parts are being repaired.

Inventory Optimization is a tool that uses Mathematical Algorithms to minimize the supply chain cost by maintaining the optimal stock levels predicted from inventory analysis. This option makes inventory management more effective and efficient therefore enhancing customer servicing levels. Essentially parts are randomly selected and placed in random locations. Usage for these parts is simulated based on flight plans. The Materials Manager will look for shortages and overages. They will continue to perform these simulations and manipulate the data until the desired results are achieved. This information is then taken and a formula and historical data are applied. This is simulated as many times as possible until the optimal inventory is produced.

The Inventory Optimization (Expendable) option has been designed to facilitate a simulation for expendable parts. This simulation will help Materials Managers determine which location(s) should maintain the optimal number of parts based on historical records and long term flight plans for utilization.

The following sections, tabs, and buttons are available:

Re-Order Level Process