Spare parts Logistics: A review of ideas and industry practice

Demand for spare parts is often difficult to forecast using historical data only. In this paper, we give an
overview of installed based management and provide several ways in which installed base information
can be used to support forecasting.We discuss cases where installed base information is used in
forecasting at four companies and list the issues involved. More over,we review some models to
illustrate the potential value of the installed base information and conclude that forecasts of spare parts
demand and return can be made considerably more timely and accurate using installed base
information.

Rommert Dekker – Erasmus University Rotterdam

Çerag Pinçe – Brooktorkai

Rob Zuidwijk – Erasmus University Rotterdam

Muhammad Naiman Jalil – Lahore University of Management Sciences