A review of simulation modelling approaches in aviation spare parts inventory optimisation

Aviation spare parts are expensive and are being kept as a buffer for unscheduled and scheduled maintenance activities. Apart from cash flow being locked in the inventory, spare parts for aircraft or helicopters are also critical in the continuous operations of air assets. In addition, the holding cost is roughly 20 per cent of the total inventory value. Holding costs are costs such as insurance, utilities and manpower. Minimising the total inventory value could be done by adopting a lower inventory count through various methods, such as the provision of spare parts, which can be done either by forecasting the failure of components or by using new maintenance methodologies, such as predictive maintenance. The methods have been used widely in the aviation industry for a long time. The upward trend of papers published from 1963 to 2023 shows that aviation spare parts optimisation is still being discussed. This paper reviews the simulation modelling approaches to optimise aviation spare inventory. 221 papers were reviewed from Scopus and Web of Science (WoS) literature databases, and 17 papers from 1982 to 2023 were chosen based on the simulation modelling approach, such as System Dynamics and Discrete-Event Simulation. The papers were classified according to simulation modelling techniques, spare parts and operations classification, and challenges and opportunities.