The purpose of this study is to make an improvement for the existing decision making through the development of risk based technique based on spare parts quantity level and cost to optimize the inventory level cost in plant maintenance. An investigation of equipment reliability and the need for the required number of spare parts in the production plant of PETRONAS has been conducted. By using the inventory spare parts database, the proposed technique should be able to demonstrate the developed technique and indirectly assist the company to improve their current maintenance and inventory management. This technique emerged due to awareness of importance on financial impact in managing plant operation. The risk based technique acknowledged the weaknesses and strengths of managing inventory of plant operation, and has great potential in improving decision making effectiveness. The empirical results and findings from this study are helpful to the inventory planner in the negotiation process of spare part inventory quantity determination with the plant maintenance as it provides information on the significant impact of inventory excess and shortage on the organization’s financial risk. This work provides an original and significant contribution to the field of inventory management, risk quantification and optimization.
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In-Text Citation: (Sharif, 2018)
To Cite this Article: Sharif, K. I. (2018). A Risk-Based Technique Based On Spare Parts Quantity and Cost for Optimizing Inventory Level In Plant Maintenance. International Journal of Academic Research in Business and Social Sciences, 8(11), 733–744.
Copyright: © 2018 The Author(s)
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