Demand Planning based on Performance Measurement Systems in Closed Loop Supply Chains

The operational readiness of an aircraft fleet is based on a reliable maintenance, repair and overhaul (MRO). In order to reduce the downtimes of aircrafts, damaged components are replaced on site. The need for immediate replacements associated with long lead times require spare parts stocking. To operate on a competitive basis, the optimization of the spare parts inventory level has to take place under consideration of financial and non financial aspects. In order to be able to evaluate and improve the spare parts supply process in the civil aviation industry, the formulation of a performance measurement system is subject matter of this paper. The performance measurement system presented in this paper is based on a balanced scorecard. Herewith, the complex coherences deriving from multiple participants in the closed loop supply chain can be considered by means of cause and effect relationships between the parameters used. The holistic approach leads to a performance measurement system that enables planning divisions to meet the requirements of complex closed loop supply chains and improve operating efficiency.