Spare part management in a testing workshop

Spare part management is essential to many organizations, since excess inventory leads to high holding costs and stock outs can greatly impact operations performance, but it is a major problem in the testing work shop in Robert Bosch China Diesel (RBCD) Wuxi. The workshop is used to test the functionality of the injectors, such as those statistics for pressure, electro conductivity, etc. After implementing the automated tower storage in the work shop, the workshop supervisor applied monthly order policy to purchase spare parts, which means at the end of each month, he/she will check the consumption of last month´s spare parts and make orders according to that data. However, in order to control the inventory of spare parts and achieve minimum total inventory cost of those parts, the (Q, r) model was suggested to make the monthly order, realizing the goal of maximizing the net profit of injectors.