Inventory management for power transformer spare parts

In this paper, the asset management strategy is applied to power transformer in order to optimize spare parts for inventory control while the inventory cost is minimized. Using Pareto analysis, power transformer's components in the stock are classified into ABC classes. Class A means the few most expensive ones that need special care. Class B means ordinary ones that need standard care. Class C means the large number of cheap items that need little care. The failure statistic of power transformer's components is analyzed to determine critical part of power transformer. Then the appropriate ordering policies for the spare parts are applied each class. Consequently, the suitable time for reordering and optimum ordering quantity and saving inventory cost are calculated. The inventory control of power transformer fleet in Thailand is presented as examples of ABC classes.