Spare parts management at the royal Netherlands navy: Vari-Metric and Beyond

This paper explores the applicability of sophisticated models and techniques for spare parts inventory management within a highly technology driven environment, viz. the Royal Netherlands Navy. In particular, we discuss the structure of the VARI-METRlC models as a tool that aims at a high availability rate of complete systems, and compare it with more classical inventory management approaches, aiming at a high availability of individual items. Unfortunately, the VARI-METRIC models suffer from a series of limiting assumptions that are not fulfilled within the Navy. We identify these shortcomings and suggest a number of extensions, to provide a firm basis for both the initial supply and the spare parts management during the exploitation period of systems.