Economic Order Quantity Model of Aircraft Turnover Parts in Aviation Industry

Abstract

The inventory control of turnover parts is the key and difficult point for aircraft spare parts management, which is directly related to the benefit level of airlines in aviation industry.On the basis of considering the depreciation cost, repair cost, inventory cost and shortage cost, this paper analyzes the annual replacement times and turnover cycle, and puts forward the optimization model of Economic Order Quantity (EOQ) of aircraft turnover parts. The feasibility of the method is verified by an example. Through sensitivity analysis, it is concluded that the strong sensitive factors affecting EOQ are annual replacement times and unit shortage cost, while the purchase price has little influence on EOQ.