Abstract:
This research concerns a case study of inventory management for a composite material
used in the maintenance operations of aviation engine. The min (s)max (S) quantities obtained
from historical demand data were used as the inventory control policy without considering of the
other associated management costs. As a result, the total cost of inventory management was quite
high. This research, thus, investigated the effectiveness of inventory management between the
(s,S), (s, Q) and (T, s,S) control models. The total inventory management cost and the service
level of such models were compared under the circumstances of discrete distributed, nonstationary
and unknown demandsusing the Monte Carlo simulation.
The results indicated that the (s,S) model provided the lowest total cost that was
determined to be 56,619 baht per year, or43% lower than the total cost of the current control
policy, with acceptable service level. Therefore, the (s,S) inventory control policy is
recommended for further implementation.