Forecasting Spare Part Demand with Installed Base Information: A Review
35 Pages Posted: 25 Jan 2018
Date Written: December 2017
The majority of the spare part literature studies intermittent demand forecasting. However, these methods typically do not consider the underlying demand generating factors. It seems reasonable to presume that the spare part demand can be explained by the service operations that require the use of these parts. This information can be helpful for forecasting purposes. In this article, we review the literature of such information from service operations, which we refer to as installed base information.
The aim is twofold: First, by providing the academic community with a review on the literature concerning the use of installed base information (which is to the best of our knowledge non-existent), it can serve as a foundation for future academic research. Second, we offer practitioners insight on the potential of installed base information to improve their forecasts. This way we aim to stimulate appropriate data collection and implementation of installed base forecasting methods.
Keywords: spare parts, demand forecasting, literature review, maintenance, installed base
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