We have developed an in-house Monte Carlo simulation tool for the optimisation of spare parts. The tool calculates the whole life costing of various options, considering the business benefits (reduction of business interruption costs) and costs associated (i.e. capital costs, spare handling, obsolescence, and degradation) identifying the right quantity required for each item to minimise the overall business costs.

The solution takes into account the demand rate of each component and the context of application of the item, (i.e., redundancy, availability, and interruption costs), as well as the capacity or not of in-house repair of the failed unit after replacement.