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Parts are commonly used in making, repairing or maintaining consumer or industry products. Parts could be purchased or manufactured by a business enterprise. Advance models were applied to parts operations for manufacturers of transport refrigeration equipment and high-pressure positive displacement plunger pumps. Both companies have an established network of dealers for sales and service of equipment and parts. A number of areas in the parts business operation were researched which show the potential for improved operational efficiency and customer service that increase market share when advanced process models were used to integrate the supply chain. This book covers the subject of parts management through: (1) an introduction to areas of parts business operation with potential for substantial improvements and overview of various models proposed in Chapter 1; (2) quantitative effects on customer service level of inventory miscount and lead time variability and methods to reduce these factors in Chapter 2; (3) optimal division of items based on economics within a two-level distribution system; which items should be serviced through dealers and which items directly by the company to end-customers in Chapters; (4) optimal ordering procedures for a multi-item common supplier system with either constant or random demand rates for various items in Chapter 4; Vll viii Parts Management Models and Applications (5) attribute based classification scheme to promote standardization of design and manufacturing techniques for expediting product development and control design proliferation in Chapters 5 and 6; (6) knowledge base management to enhance manufacturing operations effectiveness in Chapter 7;
