A Geometric Mean-based DEMATEL Model for Evaluating the Critical Challenges of Spare Parts Planning

Abstract

We present a method for evaluating the critical challenges of spare parts planning (SPP) to help planners develop appropriate SPP strategies. The purpose of this study is to propose a framework that clarifies key factors shaping the understanding of critical challenges of SPP. Through a literature review, 16 critical challenges of the SPP criteria of planning are identified. Field study data are acquired through questionnaires given to logistics managers at a well-known computer company. After the data are analyzed through principal component analysis (PCA), the geometric mean is calculated, and we then evaluate these critical challenges of the SPP criteria using the decision making trial and evaluation laboratory (DEMATEL) approach by visualizing the structure of complex causal relationships among these criteria and obtaining the criteria influence level. The most critical criteria found in this study were “Planning for new product introduction”, “Lack of system integration”, “High cost” and “High number of parts”. Our contribution is to effectively integrate logistics managers’ experience to identify critical challenges of SPP under limited resources for adoption in real business. In addition, this study is to evaluate the critical challenges of SPP using a systematic and logical approach method.