Forecasting and strategic inventory placement for gas turbine aftermarket spares

Abstract

This thesis addresses the problem of forecasting demand for Life Limited Parts (LLPs) in the gas turbine engine aftermarket industry. It is based on work performed at Pratt & Whitney, a major producer of turbine engines. The author worked in the Global Materials Solutions program, Pratt & Whitney's latest business venture, in which they will provide OEM quality materials for the CFM56 engine manufactured by CFM International. The new business venture required a forecasting method that did not rely heavily on customer input or historic demand. A forecast was developed using publicly available aircraft utilization history for the LLPs in the aircraft. In addition, a methodology was proposed for the remaining parts that will be studied in a future LFM internship. In addition, an inventory placement analysis was completed for the GMS LLP supply chain.