Spare parts management receiving

It is clear that the cost associated with inventory depends on the variance of demand during lead time. In such a case, the larger the demand variance, the greater the effect of lead time on safety stock. Now suppose orders to a fadlity came from two sources that differ in their demand variability. Suppose we provide priority to the higher demand variance orders and low priority to the low demand variance order what is the impact Note that, as shown analytically and illustrated with a numerical example in Chapter 4 on capacity management, if one set of orders receives a priority, the lead time for those orders will decrease. But, since the capacity level is unchanged, the lead time for the lower priority orders will increase. Thus, priorities are one mechanism to offer differentiated lead times across order streams and thus improve supply chain performance for spare parts. 

The plant management should allocate in writing the responsibihty for receiving on the site any materials, spare parts and components, and should issue a special procedure to control the receiving and acceptance process. This procedure should include visual external inspection for transit damage or deterioration, and verification... 

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