Dynamic order strategy(R, st, ST) for automobile spare parts on a target service level
This paper studies on dynamic order strategy for auto spare parts on a target service level. A new three-dimensional classification is proposed integrated order policy of spare parts. It improves the present the weakness of ABC classification and combines with three control variables influenced the order policy, X demand, Y item price and Z variation of demand, to classify all spare parts. Unlike most extant inventory-control approaches, Strategy(R, st, ST) offered is a kind of dynamic order strategy integrated with inventory control parameters with inventory check cycle (R), dynamic reorder point (st) and dynamic order quantity (ST) and is set the goal with a target service level while minimizing of total inventory cost. It takes into accounts the dynamic requirements in category, time and quantity in accordance with automobile spare parts. Simulation experiments were performed by ARENA 10.0 to represent the performance of strategy (R, st, ST) and the optimized strategy is given. Outcomes simulating show that dynamic strategy (R, st, ST) enables to carry out dynamic inventory management and control by parameters R, st, ST for automobile spare parts. Also a goal under a certain target service level while satisfied the minimization of total inventory cost can be come true.