Spare Parts Inventory Essay Example For Students

Spare Parts Inventory Essay The company manufactures systems that perform most of the primary steps in the chip fabrication process. The main customers of the company are semiconductor wafer manufacturers and nonconductor integrated circuit manufacturers, which either use the chips they manufacture in their own products or sell them to other companies downstream, The company owns research, development and manufacturing toxicities in the United States, Europe and Far East and distributes its systems across the globe to worlds leading semiconductor companies. The company is at the top tot the supply chain for most personal computers and other high technology products. Semiconductor systems are very expensive investments and are very critical to operations of many high technology companies, Unused semiconductor manufacturing capacity due to equipment failures is very costly. In order to provide spare parts and service to customers for equipment failures and scheduled maintenances, the company has an extensive spare parts network, The network consists of more than 70 locations across the globe, that consists of company owned distribution centers and depots. We will write a custom essay on Spare Parts Inventory specifically for you for only $16.38 $13.9/page Order now In addition, the company also has agreements with its leading customers where it manages the stock rooms (for all or a group Of spare parts) in customer facilities (some Of these are consignments). 3 continental distribution centers: one in North America, one in Asia and one in Europe I CHAPTER 1. INTRODUCTION constitute the backbone of the network and are primarily responsible for procuring and distributing spare parts to depots and customer locations. The depot locations are such that they can provide a our service to customers (those who do not have stock rooms operated by the company) for equipment failures (down orders. However, the continental distribution centers may also be used as a primary source for Devon orders for certain customers. In addition, the continental distribution center provides a second level of support for down orders that cannot be satisfied from the local depots. The customers also demand spare parts to be used in their scheduled maintenance activities (lead time order