Glossary
What is Spare Parts Optimization?
Last updated July 2026
Definition
Spare parts optimization sets stocking levels for MRO and service parts based on criticality, consumption, and lead time — balancing uptime against carrying cost.
Spares are hard: demand is intermittent, criticality varies, and stockouts can halt production. Blanket buffers are the default, and they create 15–25% excess.
Optimization means stocking by criticality and real consumption, and actively disposing of what no longer has demand.
Sources: R4 / MRO benchmarks
Part of Excess & obsolete inventory.
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