REPAIR TO REUSE EXPLAINED
What is needed to address the challenges of MRO inventory planning is an approach designed around a “Repair to Reuse” (RTR) model. This supports MRO specific inventory planning activities and decisions such as:
- Repair/Don’t-Repair at unserviceable removal
- Consignment Holdings
- Network Allocations
- Post Repair Allocation and
- Part Liquidations.
These go far beyond the purchase and distribute decisions within the manufacturing “Purchase to Consume” model. While purchasing might be a consequence of the decision making process, it should be the last action considered.
The “Repair to Reuse” inventory planning model contains the analytical sophistication required to address the uncertainty of demand, scale and complexity surrounding MRO inventory, enabling airlines and MROs to target optimal float levels to deliver service level and investment KPIs.