Abstract
This paper is concerned with the optimization of inventory management system for spare parts. We set up a model in (Q, r) inventory systems and draw the nomographs for minimum-cost order quantities, reorder points, safety stocks and service ratios in optimal policies which can be obtained by numerical analysis. The iteration usually necesary for simultaneous determination of an optimal policy can be eliminated by using the graphs. This graphical technique always gives us optimal policy for any forecasting errors. The effects of applying the system to the management of a plant were very clear and the management performance was improved.
