z-logo
Premium
Managing Critical Spare Parts within a Buyer–Supplier Dyad: Buyer Preferences for Ownership and Placement
Author(s) -
Wallin Blair Cynthia,
Rungtusanatham Manus,
Rabinovich Elliot,
Hwang Yuhchang,
Money Richard Bruce
Publication year - 2020
Publication title -
journal of business logistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.611
H-Index - 79
eISSN - 2158-1592
pISSN - 0735-3766
DOI - 10.1111/jbl.12243
Subject(s) - spare part , business , postponement , preference , inventory management , stockout , supply chain , inventory theory , consignment , marketing , industrial organization , operations management , microeconomics , economics
Despite the criticality and expense of spare parts, many firms lack a coherent strategy for ensuring needed supply of spare parts. Moreover, scientific research regarding a comprehensive spare parts strategy is sparse in comparison with direct material. Our research identifies and tests three literature‐based, theoretically anchored attributes that influence a buyer's preference for inventory ownership and inventory placement when managing the stock of a critical spare part. Our findings indicate that item specificity and item supply uncertainty are useful in predicting a buyer's preference for managing the inventory of a critical spare part. Furthermore, we find that buyers have (1) a strong preference for consignment‐based inventory management approaches, (2) a bias against inventory speculation despite its use in practice and analytical models, and (3) a strong preference for inventory postponement when the level of supply uncertainty is low.

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here