Optimal Strategies Of Spare Parts Inventory For MJ Company

As competition in the domestic consumer electronics market becomes more and more intense, and profit margin becomes smaller and smaller, cost control and service differentiation strategy are particularly important. Spare parts for the product has a direct impact on the overall cost and profit, but also is an important guarantee of service quality improvement. So inventory management is an important method to control the cost of spare parts.This thesis takes MJ Company as the research background, focusing on its existing problems of spare parts inventory management and proposing the corresponding solutions. LORA is the base of spare parts inventory management. Through the analysis of level of repair effect on spare parts inventory, choose an appropriate level of repair and inventory control method at a given service level. Prediction of Spare parts demand is an important part of spare parts inventory management, in view of the current situation of MJ company, failure rate calculation method and the weighted moving average method are proposed. Focus on using a method, ABC classification base on AHP, to strengthen the management of spare parts' classification. The availability, importance, and value of spare parts are to be used as the rule of classification. Through analyzing the instance data, give the corresponding strategies of inventory management according to the classification results. The strategies of spare part inventory can help to improve the main aspects of inventory management capabilities: optimizing the structure of spare parts inventory, declining the level of inventory, reducing the rate of out of stock and enhancing the work efficiency etc.