Khwaja Usman Ahmad

UNIVERSITY OF ENGINEERING AND

TECHNOLOGY, PESHAWAR

ASSIGNMENT : 1

NAME : KHWAJA USMAN AHMAD

REG NO : 20PWIND0637
COURSE :
OPERATION OF MANUFACTURING SYTEM
SUBMITTED TO: Dr IFTIKHAR HUSSAIN

Operation of Manufacturing System

Khwaja Usman Ahmad

Answer all questions in the context of research articles

1. List the different classification schemes for spare part inventory

management.

Answer:
There has been 28 research based on this. Out of which 10 are particularly about classification of
spare part inventory management. Different schemes are as follow:

 Croston’s method,
 Syntetos—Boylan approximation,
 single exponential smoothing (SES)
 Bootstrapping methods.

2. Discuss the identified research gaps.

Answer:
Following are the identified research gaps in the research paper:

 reverse logistics
 consumer durable goods
 supply chain network structure and policies,
 spare parts demand pattern modeling,
 big data analytics

 Research Gap Regarding Reverse Logistics

In Reverse Logistic we turn the inputs such as the used products, recycled materials, used parts
into the outputs such as remanufactured products and spare parts. It has four sub processes:
product acquisition, collection, inspection/sorting, and disposition. As spare parts are one of the
outcomes of the reverse logistics so it is closely related to spare part management. It is necessary
to study how to allocate the inventory of different spare parts which are used in different
disposition alternatives.

Operation of Manufacturing System

Khwaja Usman Ahmad

 Research Gap Regarding consumer durable goods

This research gap is subdivided into parts

a) Spare parts inventory problems of consumer durable goods

There is a short inventory planning period of spare parts in consumer durable goods and demand
is fluctuating. The first half is based on managing the spare parts inventory of consumer durable
goods which lack the perspective of life-cycle planning. The second half is based on how to
manage the spare parts inventory of consumer durable goods under warranty contracts.

b) Multiple substitutable products sharing a spare parts inventory system

For product segmentation the strategy used is in which multiple substitutable models for one
product type are provided to customers from different groups.

 Research Gaps Regarding Inventory Network Structure and Policies

Inventory network structure has two aspects: multi-echelon spare parts inventory systems and
lateral and emergency transshipments. The multi-echelon inventory system is very frequently
used nowadays for spare parts management for original equipment manufacturers. Lateral
transshipment and emergency shipments are used in a multi-echelon system.

 Research Gaps Regarding Spare Parts Demand Pattern Modeling

This study focuses on how to identify different demand patterns of spare parts and correctly
forecast its demands. Using non-stationary stochastic processes the modeling of spare part demand
pattern can be done.

 Research Gaps Regarding Implementing Big Data Analytics

Big data analytics provides product development, strategic management, and customer services
by utilizing evidence-based data, statistical and operations analysis, predictive modeling,
forecasting, and optimization techniques. Big data analytics is used because computer capacity is
limited while information of spare parts is very big so we use it.

Operation of Manufacturing System

Khwaja Usman Ahmad

3. What is the use of reverse logistics in spare part inventory

managements?

Answer:

Use of Reverse Logistics in Spare Part Inventory

The current study on Reverse Logistics in spare parts inventory management has simplified
settings. As spare parts are one of the outcomes of the reverse logistics so it is closely related
to spare part management. By reverse logistics , some spare parts are sent back to the market
as reused parts after inspection and some are recycled as raw materials.

4. What is difference between capital goods and durable goods?

Answer:
Durable Goods Consumable Goods
I. They are not directly involved in They are directly involve in producing
producing goods goods

II. They are supported by distinct after- They are supported by the Original
sales services. Equipment Manufacturer OEM or a third
party.

III. Warranties are provided. Warranties are not provided.

IV. Purchasing in a large volume Purchasing a fleet of identical products in

use.

5. How big data can improve the spare part inventory management?

Answer:
In this paper the spare part inventory management in managing thousand or hundreds of
spare parts. Big data analytics is used rather than other things because computer capacity is
limited for dealing with such huge number of spare parts, on the other hand big analytics is
used specially for big data.

Operation of Manufacturing System