Slow-Moving/Service Parts Management (ID)

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2.00 hours
Online Self Study

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About the Course

Effective management of service parts inventories is often critical to customer satisfaction. If John Deere runs out of a key replacement part in the middle of harvest season, a farmer could face serious difficulties. The complicating factor is that many of these parts have very low demand rates and therefore require models and procedures that differ from those developed in the Calculating Safety Stock course. This course presents simple models based on an appropriate probability distribution of slow demand rates. Because many service parts systems have multiple tiers, we develop models of multilevel systems composed of regional warehouses and dealers.

Course Description

Note: This course is planned for future development. Content and scope will be finalized during the design phase of the course development.

This course is ideal for anyone who understands basic inventory management tools, but who is faced with managing slow-moving parts. Students who manage service parts, or other important or high-cost, slow-moving parts, will also be interested in this course. The course includes many examples.


This course covers the following topics:

  • The Poisson probability distribution, showing how it applies to slow-moving parts
  • When to apply the Poisson distribution and when to apply the Normal distribution (which is more commonly used and was applied in the Safety Stock course)
  • How to calculate optimal inventory levels for slow-moving parts
  • How to apply these models to a multilevel system
  • The order-aging chart that illustrates how orders age as you move up the network