Determining the optimal stock levels for Inventoy in any Airlines / Aircraft operator or MRO is not an art but its a science. For most companies, it is generally an impossible numbers game.
Inventory managers are often faced with the challenge of maintaining tens of thousands of items, each with their own features, requiring intricate and time-consuming calculations. Without an organized methodology and robust analytical tools, the proactive management of huge inventories becomes an improbable job, resulting in fast increasing inventory levels combined with serious shortages of spare parts.
The International Air Transport Association (IATA) released the IATA Airline Industry Forecast 2012-2017 showing that airlines expect to see a 31% increase in passenger numbers between 2012 and 2017. By 2017 total passenger numbers are expected to rise to 3.91 billion—an increase of 930 million passengers over the 2.98 billion carried in 2012. To accommodate these 31% more people, airlines would need 31% more aircrafts. The number of cargo and charter planes are increasing day by day as well.
If we go by these numbers, need for new MRO facilities as well as upgrade in existing MRO facilities will be required to match the growing demand.