Cheran Transport Corporation: Management of Maintenance Spares

Abstract

The central managerial and policy issue presented in the case to understand the implications of reconditioning time, inventory allocation policy, structure of the distribution system to the size of the float inventory as measured by appropriate service level. Such problems arise in a variety of situations. The case presents a variation of this problem in the context of public transport systems. The main issues for discussion include: The need to balance capacity in the reconditioning unit and demand in the long run. Need to manage the reconditioning facility based on productivity measures to respond to the fluctuation in demand in the short term. Decide an appropriate distribution structure to meet the demand requirements at the operational location. Given a distribution structure decide on an allocation policy of spare inventory. Identify the trade off between spare inventory investment and service level. Design and implement an elaborate information system to plan, monitor, and control the flow of spare inventory. The case provides comprehensive data to formulate and appropriate model/approach to resolve the issues mentioned above.