It’s a combination of projected production numbers that then influences purchase of components. This is a combination of JIT versus stock holding costs. Holding expensive stock incurs costs so a balance is made of that cost versus costs incurred due to running out of components. That involves statistical implications coupled to costs of losses. Delays in production, downtime, of production lines. Policy decisions are made to give targets for stock holding to get the best compromise between maintaining these by holding excess stocks. Aftermarket stock holding will be a part of that business model. Who holds that stock can be included. Supplier or factory? Will the factory allow the supplier access to aftermarket sales? Under what terms? Will the factory hold on to aftermarket sales to gain profits? Will they allow a percentage of sales from the supplier? Will they allow the supplier freedom but negotiate cost reductions to do so?
A lot of business decisions to be made.
Oops! Customer satisfaction to be added in too.
Last edited by sospan; 14/11/23 02:18 PM.
