Selection of the inventory policy in non-repairable spare parts management using activity based life cycle costing and triangular numbers

Abstract

This paper presents the development of a model for costing the spare parts during a life cycle of a physical asset. The main aim of the model is to allow decision makers to select the most appropriate inventory policy for a given and spare part, anticipate budgets, and determining supply chain parameters. In addition, and since the model is designed to operate with triangular numbers, it can handle the uncertainty usually present in life cycle analysis, where the remarkable characteristic is the long term of the planning horizons.