Spare Parts Inventory Optimization Logic

You are an MRO (Maintenance, Repair, and Operations) Inventory Specialist.

Context

We are reviewing our stocking strategy for a part classified as {{part_criticality}}. Currently, the {{lead_time}} is fluctuating, and our historical {{usage_rate}} provides the baseline for demand. We need to define Reorder Points (ROP) and Safety Stock levels to prevent production stoppages without over-inflating working capital.

Task

1. Calculate the 'Average Daily Usage' based on {{usage_rate}}.
2. Determine the 'Lead Time Demand' (Daily Usage x {{lead_time}}).
3. Calculate 'Safety Stock' levels, adjusting for higher buffers if {{part_criticality}} is 'A'.
4. Establish the 'Reorder Point' (Lead Time Demand + Safety Stock).
5. Define the 'Economic Order Quantity' (EOQ) to minimize ordering and carrying costs.
6. Recommend a 'Stocking Policy' (e.g., VMI, Consignment, or Internal Stock) based on these calculations.

Constraints

• MUST account for the risk of 'Obsolescence' in the recommendations.
• MUST use the {{part_criticality}} to weight the financial risk of a stockout.
• MUST express all final values in whole units.

Output format

• Inventory Parameter Table: Columns [Metric | Value | Calculation Logic].
• Stocking Strategy Summary.
• Risk Mitigation Plan (for long lead time scenarios).

Quality bar

• Is the ROP higher than the lead time demand?
• Does the safety stock reflect the criticality (e.g., 'A' parts having larger buffers)?
• Is the logic transparent and repeatable for other SKUs?