This case study is designed to explore the challenges of forecasting and inventory management in spare parts industry. Most items in this industry have lumpy, intermittent, erratic and slow demand patterns. Traditional forecasting techniques cannot be applied to this group. Also most textbook methods on inventory planning, assumes the demand is normally distributed – which is also not the case in spare parts industry. Strategies can be tested for the demand data provide for about 40 items
Note: This case was developed solely for the purpose of classroom discussion. Some details of the case, including names of the companies, have been disguised. This case is not intended to serve as endorsements, sources of academic or business data, or illustrations of effective or ineffective management of the personnel or company.
Narayanan, A. and Seshadri, S. (2018), "Dockomo Heavy Machinery Equipment Ltd.:
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