In this paper obsolescence of service parts is analyzed in a practical environment. Based on the analysis, we propose a method that can be used to estimate the risk of obsolescence of service parts, which is subsequently used to enhance inventory control for those parts. The method distinguishes groups of service parts. For these groups, the risk of obsolescence is estimated using the behavior of similar groups of service parts in the past. The method uses demand data as main information source, and can therefore be applied without the use of an expert's opinion. We will give numerical values for the risk of obsolescence obtained with the method, and the effects of these values on inventory control will be examined.

Additional Metadata
Keywords Case study, Inventory control, Obsolescence, Spare parts, Sudden death
Persistent URL dx.doi.org/10.1016/j.ijpe.2010.06.014, hdl.handle.net/1765/20205
Series ERIM Article Series (EAS)
Journal International Journal of Production Economics
Note Article in press - dd August 2010
Citation
van Jaarsveld, W.L, & Dekker, R. (2011). Estimating obsolescence risk from demand data to enhance inventory control-A case study. In International Journal of Production Economics (Vol. 133, pp. 423–431). doi:10.1016/j.ijpe.2010.06.014