MRO Inventory Management
MRO inventory refers to supplies, spare parts and other materials needed for routine maintenance, repair and operations.
By strategically managing your inventory levels, you ensure that the right materials and components are available for production without excessive overstock.
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What is MRO Inventory Management?
Critical for the maintenance warehouse
MRO (Maintenance, Repair, and Operations) is not just about having supplies on hand but strategically managing those inventory levels to avoid both shortages and excess. This process involves:
- Defining parts criticality
- Defining min/max inventory levels.
By setting these thresholds, the plant can maintain the necessary stock to prevent production delays while minimizing carrying costs and reducing waste.
Parts Criticality
ABC Classification
Stocks can be classified as 3 categories, according to their turnover rate:
- Class C: Active inventory or frequently used elements. Worth under 100 $ and turnover rate above 12 / year
- Class A: Rarely used inventory or «critical». Worth over 1000 $ and turnover rate below 6 / year
- Class B: Infrequently used inventory. Worth between 100-999 $ and turnover rate about 6 / year
Optimization of Min/Max
Calculate Optimal Order Quantity
The method of supplying stocks Min/Max is a basic mechanism of resupplying which is used in many ERP and stock management software.
The “Min” value represents the level of stock which initiates a resupply order, while the “Max” value represents the quantity of stock that is targeted after resupplying.
The difference between the two values is often interpreted as the Economic Order Quantity (EOQ)
