Inventory management and spare part's stock implementation in a automobile company

It is known the companies which are in the manufacturing sector bear the high costs in logistics processes. At the top of these costs are transportation and inventory costs. Inventory costs can be realized at different levels according to the working styles of companies. For this reason, it is very important for each company to establish an optimal inventory rule for that company. In this study, one of the priority parts of a company 's product range, which acts as a subsidiary producer in the automotive sector, is discussed. The considered part is important in terms of cost in the product range and has a very high degree of safety as terms of human safety. Demand volatility has been determined from the historical claims of the related part. Estimated requests were identified and investigated to determine whether the best batch size rules or the economical order quantity (EOQ) approach could be used. Inventory schedules were made in the literature with frequent service level order quantity and reorder point approach. The calculations are made separately for the subassembly of the related parts. Security stocks, order cycle times and total average annual cost calculations are also shown, and the company's optimal inventory rule is revealed.