by Oli Hakansson
I was asked a question recently about the level of spare parts inventory that should be carried as a percent of the Asset Replacement Value (ARV). This is not an unusual question. In fact, these types of questions come up frequently. Maintenance of inventory turnover levels and storeroom value as a percentage of ARV are dependent on a host of factors specific to each plant. Because of the complexity of these calculations I have written a series of articles that should give you key benchmarks and trending factors that should be considered when managing your plants reliability efforts.