Course Description

An overview of theories and methods used for managing inventory in the service sector (e.g. utilities, airlines, rail, etc.). Unlike conventional inventory management for manufacturing work-in-process (WIP) and finished goods, inventory management for service operations deals maintenance-related and spare parts and inventories that are critical for ensuring equipment availability and supporting maintenance, repair and operations (MRO).

The course focuses on understanding the unique aspects of managing inventory for MRO and Service Operations. This includes understanding various aspects that drive demand in the service-related companies like demand originating from maintenance and repair activities. The course will discuss different types of part classifications, inventory forecasting methods, and a classic inventory control models and theories. Methods and practices that are more suited for managing MRO-related inventory will be emphasized and discussed in greater detail. 

Who Should Attend

This course is designed for inventory managers, supply chain practitioners, procurements officers, and individuals responsible for managing storerooms and part warehouses in service-related industries. 

How You Will Benefit

• Gain a deeper understanding of demand characteristics for service and spare parts inventory.
• Improve demand predictability by understanding MRO practices.
• Understand and apply part classification strategies to reduce inventory costs and prevent stockout instances.
• Understand and apply alternative inventory control policies for different types of parts, slow moving versus fast moving, versus intermittent.
• Gain the ability to develop a comprehensive step-by-step roadmap for improving spare parts inventory management strategy.

What Is Covered

• The unique characteristics of MRO inventory management in the service industry, such as utilities, airlines, rail and other non-manufacturing/retail industries
• The nature and sources of demand for service parts, consumables, and replacement spare parts
• Common maintenance practices and repair strategies, and their impact on parts demand
• Qualitative and quantitative part classification, the benefits and limitations of each, and which strategies are best suited for regular versus intermittent demand
• Basic demand forecasting techniques for fast-moving parts, slow-moving parts, and intermittent demand
• Underlying theories of classic inventory control models including EOQ, continuous review, periodic review, and base stock policies
• Comprehensive framework for improving spare parts inventory management