Optimising aircraft spare parts inventory: a cost-reduction model

What the paper says

Managing spare tools and equipment remains a significant operational challenge for aviation Maintenance, Repair and Overhaul (MRO) organizations. For example, despite the 2003 merger of Royal Dutch Airlines (KLM) Engineering & Maintenance and Air France Industries into AFI KLM Engineering & Maintenance, inventory planning and forecasting systems continued to operate separately, leading to parts shortages, excess inventory and extended repair cycles. In several cases, maintenance delays lasted more than a year, indicating that inventory decision-making needs enhancement. This study assesses data-driven inventory management methods to lower costs and improve operational performance in commercial aircraft maintenance. The analysis uses both primary and secondary data to compare traditional inventory-tracking techniques with a more advanced Poisson-based demand-prediction model. The findings suggest that conventional overstocking and understocking strategies increase operational costs and lead to longer maintenance delays, whereas the Poisson model improves forecasting accuracy and cost management. To implement these insights, the study recommends an integrated decision-support dashboard that aligns demand forecasting, inventory policies and standard operating procedures. This dashboard offers MRO managers a practical tool to anticipate demand changes, prevent stockouts, cut holding costs and reduce repair turnaround times. Overall, the study provides actionable insights and a clear roadmap to support the adoption of integrated inventory systems in aviation maintenance operations.