Decision support system for spare parts warehousing

Abstract

Spare parts warehousing decision-making plays an important role in today's manufacturing industry as it derives an optimum inventory policy for the organizations. Previous research on spare parts warehousing decision-making did not deal with the problem holistically considering all the subjective and objective criteria of operational and strategic needs of the manufacturing companies in the process industry. This study reviews current relevant literature and develops a conceptual framework (an integrated group decision support system) for selecting the most effective warehousing option for the process industry using the analytic hierarchy process (AHP). The framework has been applied to a multinational cement manufacturing company in the UK. Three site visits, eight formal interviews, and several discussions have been undertaken with personnel of the organization, many of which have more than 20 years of experience, in order to apply the proposed decision support system (DSS). Subsequently, the DSS has been validated through a questionnaire survey in order to establish its usefulness, effectiveness for warehousing decision-making, and the possibility of adoption. The proposed DSS is an integrated framework for selecting the best warehousing option for business excellence in any manufacturing organization.