Integration approaches of forecasting methods selection with inventory management indicators in the case of spare parts supply chain

Abstract

The main scope of this paper is to improve management policies for spare parts, within the context of centralized management and more particularly with regard to forecast methods. The specificity of low and erratic demand does not allow the use of conventional approaches of forecasting. Moreover, the associated performance measurements, based on purely statistical indicators, are not adapted to the context of supply chain management. Here we propose two new performance analysis approaches seeking to combine the statistical performance of forecasting methods and inventory management performance. A comparative analysis of forecasting methods on real data enable the definition of a strategy for selecting the appropriate method when integrated with spare parts inventory management model using a continuous review (s, S).