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3. Inventory Planning & <strong>Information</strong> Enrichment<br />

structure induced by each of the error scenarios, the results vary. In many cases, the<br />

losses due to inaccuracies negate the benefits of using installed base data.<br />

3.7 Discussion and Conclusions<br />

In this chapter, we analyzed the gains of using installed base data in spare parts planning.<br />

We also identified the various types of data errors that are present in installed base data,<br />

and analyzed the impact of these errors on spare parts planning performance. Table 3.4<br />

summarizes the results of the numerical study. The positives represent situations where<br />

the overall value enhancement due to the information enrichment is not negated by the<br />

data quality errors. The negatives represent the situations where data quality errors<br />

have negated the value enhancement of information enrichment. We observe that the<br />

gains of using installed base data are significant. This is particularly relevant for low<br />

demand rates (a predominant characteristic in spare parts logistics). We classify the<br />

Installed Base<br />

Size<br />

Large<br />

Small<br />

Table 3.4: Summary - Effects of <strong>Information</strong> Enrichment<br />

Demand<br />

Rate<br />

Low<br />

High<br />

Low<br />

High<br />

<strong>Information</strong><br />

Enrichment<br />

with No Error<br />

+<br />

+<br />

+<br />

+<br />

Homogeneous Error<br />

Missing<br />

Value Error<br />

+<br />

+<br />

+<br />

–<br />

<strong>Information</strong> Enrichment with Error<br />

Wrong Value<br />

Error<br />

+<br />

+<br />

+<br />

+<br />

HQ Error<br />

N/A<br />

N/A<br />

–<br />

–<br />

Heterogeneous Error<br />

PSL Error<br />

N/A<br />

N/A<br />

+<br />

+<br />

Data Comm.<br />

Error<br />

various types of data errors in installed base data as homogeneous and heterogeneous<br />

with respect to the geographical distribution of machines. We observe in homogeneous<br />

error scenarios that the large frequencies of errors in installed base data typically do<br />

not result in significant impact. Therefore, the benefit attained by information usage<br />

is preserved. This is related to the robustness of the planning method. We observe<br />

that the planning method positions inventories in the network based on the geographical<br />

distribution of demand. If the overall geographical distribution of demand is preserved,<br />

the planning method shows little sensitivity to the geographical displacement of customer<br />

90<br />

N/A<br />

N/A<br />

+<br />

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