Aviation Spare parts supply chain management optimisation at Cathay - Case Study Example

An efficient cost reducing solution to the problem of supply chain management optimisation has been suggested from a new perspective based on integer linear programming formulation by introducing a new algorithm to the rotable part, which can be applied to the whole inventory. For this purpose, calculation has been made through Viscalc application with iterative probability computation to prove the worth of the solution in reducing cost of inventory. Report findings point to the need of changing obsolete technology used through Ultramain and update it through currently available dynamic applications, as Ultramain was acquired for handling technical log process and for general maintenance management only.

Based on the integer linear programming, the significance of the optimisation of the inventory, particularly of T category rotable parts like engine of the aircraft, is shown to be very crucial to attain. The subject of logistics and supply chain management has attained significant importance due to globalisation of business functions. No industry can manage to achieve cost efficiency and high performance levels without investing specialist resources to leverage from better supply chain management functions.

Likewise, significance of supply chain management theories and their application in aviation business of Cathay Pacific Airways Limited, one of the topmost successful business stories in the airways industry, has been felt by the management of Cathay Pacific, as derived from the case study. Cathay Pacific Airways Limited stands on a high pedestal in the matter of performance and customer patronage among the world’s leading airlines. It is a financially sound commercial airline. Cathay Pacific has successfully been voted “Airline of the Year” organised by Skytrax Research in 2005 and awarded “Airline of the Year” in 2006 by the Air Transport World magazine.

For maintaining its profit