The Research On Jointly Managed Inventory Of Spare Parts Based On TCO

Some inventory of spare parts is necessary for the continuous production. However, if the inventory is too large, it will possess a lot of fund and increase the useless storage area and safekeeping expenses on one hand. On the other hand, spare parts will be rusty due to the long time storage. Upon the need of production and technology progress, over-stored spare parts after technology improvement will also be left unused or discarded as useless. As a result, the cost of the company will increase, and the benefit will decrease. It is a significant subject both in theory and practice to organize the supply of spare parts economically and reasonably and reduce the inventory level and encourage the cycle of the capital.In this paper, we summarize the theory system of Total Cost of Ownership (TCO) from the angle of the constitutes of TCO based upon the formers'research. We put forward some advice for future research. Combined with the situation in China, the application foreground of the TCO concept and some problems are proposed.During the research, a lot of respects are explored and improved. For example, a new mode of spare parts'inventory management is put forward. We analyze the validity of the jointly managed inventory of spare parts using the concept of TCO. The cost allocation problem is solved by the models in play game.We improve the inventory management of spare parts from a new angle and analyze the importance of jointly managed inventory to the inventory management of spare parts. We propose problems in spare parts'standardization and jointly purchase. We combine the theory of play game in economics with cost management and realize the amalgamation of multi-discipline. We analyze and valuate strategies of cost allocation by play game models.