Based on the type of items that are carried in an MRO storeroom, it can be seen that one policy will not work for all inventory items. Some very expensive items are slow-moving, whereas other very inexpensive items move very quickly.
What are some of the factors that help determine the proper stocking policy for each item? Some of the factors include:
What is the part?
How critical is it to plant operation?
What is its usage pattern?
Is the part high usage? Low usage? Seasonal usage?
What does the part cost? Is the part high cost? Low cost?
Is there a discount for volume order?
What is the part’s stock out impact?
How expensive is the downtime?
How long will the downtime last?
What is the part’s lead time?
How long does delivery take after the part is ordered?