Inventory Management for Aircraft Spare Parts and Consumables

SIA Engineering Company provides aircraft maintenance, repair and overhaul (MRO) services to more than 80 international and aerospace equipment manufacturers worldwide. Our project aims to develop a model that automatically assigns optimal order quantity Q* and optimal reorder point r* for every single inventory item. We used Q-Q plot to visualize and Wilk-Shapiro test to determine numerically if the demand distribution is normally distributed for the data. We also calculated 95% confidence interval for our mean demand so that we can be confident that on average we are able to meet demand during the 1 month of supply lead time. We modeled the inventory with (Q,r) model and evaluated using fill rate as one of the performance measures.