Armac’s Advanced Analytics Engine plays a critical role in addressing the specific challenges of MRO inventory within the “Repair to Reuse” planning model.
The Armac system programmes float levels objectively. It studies the service level contribution for every part float quantity – from 0 up to the quantity that delivers a practical 100% service level. In this way the contracted service level is delivered and every part has its own float and service level depending on its demand forecast, its cost, its repair lead time (wing to shelf) and purchase lead time/scrap rate, if a repairable. This numerically-intensive process sets the optimized float quantities for each part within the defined financial and operational constraints.
The system also captures service level policy data for each part and supports “what if” modelling and scenario planning. Planners can simulate various mathematical optimization scenarios based on key business variables e.g. inventory investment and service level agreements. It then presents a range of optimized model options set against key business objectives, for instance maximise service level or minimize inventory investment. Modelling can be defined by various options including part criticality, fleet type, or geographic location. Scenario planning also enables the organization to assess the impact of Initial Provisioning or changes to the fleet.