Applicaability of the (Q,R)-Model in Maintenance Meterials Management

Purpose: The purpose of the research is to study the applicability of the (Q,R)-model in inventory management of the maintenance materials in investment intensive industry companies. The objective of the research is to answer the following research questions: 1. What is the applicability of (Q,R)-model in maintenance materials inventory management? What are the main challenges, if any, in applying the (Q,R)-model in maintenance materials inventory management? Design/methodology/approach: The research is a case study using data-analysis in answering the research questions. The case company is a Finnish steel manufacturer. Findings: The study results show that inventory levels are not controlled by the parameters of the (Q,R)-model which causes unnecessary stocking. One mechanism which causes inventory uncontrollability is also identified. Research limitations/implications: The research is based on a single case study. The maintenance management of the case company is similar to many other companies in the basic industries, but the applicability of the findings require wider empirical research. Practical implications: The paper suggests material managers to address more attention to the structure of the internal maintenance materials supply chain. Recommended actions for reducing the share of the uncontrollable material flows, include, for example, returns to the suppliers, better scheduled maintenance demand forecasting, and adding repairable transaction to the Computerized Maintenance Management System (CMMS). Originality/value – This paper presents novel results from maintenance management in process industries. The research indicates that widely applied (Q,R)-model is not a feasible method in all maintenance material applications.