Logistics formula - when to stock subcomponents?
Logistics formula - when to stock subcomponents?
(OP)
Quick question. There is supposedly a forumla out there that helps you determine if you should stock a subcomponent or not. ie Do I want to stock break shoes or should we just stock the whole break assembly, as an example.
The forumla, to the best of my knowledge, contains the following variables:
Cost of subcomponent
Carry cost (taxes, interest, facilities, etc.)
install time
est. use
quanity assembly cost
Supposedly one should be able to plug numbers into a formula that would let you know quickly if stocking the subcomponent would be a good/bad idea.
Ring any bells?
The forumla, to the best of my knowledge, contains the following variables:
Cost of subcomponent
Carry cost (taxes, interest, facilities, etc.)
install time
est. use
quanity assembly cost
Supposedly one should be able to plug numbers into a formula that would let you know quickly if stocking the subcomponent would be a good/bad idea.
Ring any bells?





RE: Logistics formula - when to stock subcomponents?
Add supplier dependability and availability of alternate suppliers at least.
Other than that - calculate inventory turns.
As it is now you are mixing dollars and lead times. They do relate but they can also be entirely separate.
Thomas J. Walz
Carbide Processors, Inc.
www.carbideprocessors.com
Good engineering starts with a Grainger Catalog.
RE: Logistics formula - when to stock subcomponents?
Root cause on historical failures/service issues should drive how a part or assembly is handled on the spare parts end of things.
I just really appreciate (not) the idiots who decided it was better to sell an entire fuel pump assembly unitized into a neat plastic housing that contained the pump, check, valve, filter, etc, when all I really needed was a stinking check valve. Who doesn't like to pay $500 for a $15 part, I always say!!!
Consumers are not all as stupid as corporate thinks they are!
RE: Logistics formula - when to stock subcomponents?
Regarding customer satisfaction, that is part two of the forumla which is to apply the brain and a little bit of common sense to the equation.
RE: Logistics formula - when to stock subcomponents?
Mike Halloran
Pembroke Pines, FL, USA
RE: Logistics formula - when to stock subcomponents?
The Army will have certain assumptions about labor rate/cost burden/criticality... hard wired into that equation which may not apply in a commercial situation.
What is Engineering anyway: FAQ1088-1484: In layman terms, what is "engineering"?