Production planning model with simultaneous production of spare parts

The paper presents, proposed by the authors, a production planning model with simultaneous production of identical components for the need of own assembly and as spare parts in machine industry plants. The model was based on literature studies and the authors' own conclusions drawn during the research works carried out in Grundfos Pompy Ltd. The proposed production planning model has been based on the classical stock management theory and material requirement planning methods. It results in merging production management and stock management in a one coherent material flow management system. The evaluation of the proposed model was made based on its empirical verification in the environment of the machine industry plant mentioned above. The results turned out to be very promising - the value of spare parts stock was reduced by nearly 50%.