Smart Spare Part Inventory Management System with Sensor Data Updating

With the advent of Industry 4.0, more and more data can be available to companies. Especially in Cyber-Physical Systems (CPS) where sensors are connected to machines, rich sensor data can be collected. However, there is still a challenge to transform the data into useful information that enables a better decision. In this paper, we focus on the inventory decisions for the spare parts. The spare parts are expensive and it takes long lead time to procure them from overseas. It is critical for companies to make better inventory decisions for spare parts. We proposed a smart inventory management system for spare parts, which can take advantage of the updated sensor data and allow better decisions through modeling the degradation process of critical operating components. In this system, the ordering decision is updated dynamically based on real time sensor data.