Stock management - a component of production planning model with simultaneous production of spare parts

This paper presents, proposed by the authors, application classical models of stock replenishment in production planning model with simultaneous production of identical components for the need of own assembly and as spare parts in machine industry plants. The goal of the thesis was to elaborate a production planning model which would allow to combine all demand sources within one production schedule and to decrease spare parts stock with simultaneous production of identical components (spare parts, subassemblies) for the need of own assembly and as spare parts. The proposed production planning model has been based on the classical stock management theory and material requirement planning methods. It results in merging production management and stock management in a one coherent material flow management system. The research was done in GRUNDFOS POMPY Ltd. Company. GRUNDFOS is one of the biggest pump producers in the world. The model has been verified through its implementation and resulted in a decrease of spare parts stock by nearly 50%.