Maintenance Inventory Planning

One of the often overlooked factors affecting the capital investment decision in new or existing plants is the value of stock holdings necessary to maintain the plant. This paper puts forward a simple decision matrix on whether a part should be stocked depending on 1. the criticality of the item of equipment in terms of the effect on cash flow of its failure, 2. the lead time of the part, and 3. the stock holding value if it were Stocked.