Inventory management for spare parts on engineering machinery

The inventory management of spare parts for engineering machinery products is significant. Compared with other products, the engineering machinery product have complex structural component. Hence, this paper first analyzed the failure prediction for engineering machinery, and then introduced the characteristics of engineering machinery in intermittent demand, based on this, the paper sum up the forecast method for spare parts demand. Meanwhile, it also introduce the remanufacturing technology, and expanded the material supplier for spare parts to three aspects: original equipment manufacturers (OEM), third-party maintenance organizations and remanufacturing business. Finally game theory was used to select the best proporation from these aspects using interest of game on the basic of three key points of inventory management (i.e., how to order, how much to order, when to order).