1
1
2nd Schedule
SPARE PARTS FOR VEHICLES
KMB will maintain sufficient stocks of spare parts to ensure
that no vehicles are out of service for want of parts without reasonable
excuse. To achieve this KMB will maintain an ordering programme in
accordance with the table below : (The computer will advise the store office by periodical report of items where the stock on hand has fallen
below the re-order point).
Spare Parts Ordering Table
Class
Safety Stock
+
Lead Time
Stock
Re-order
Point
Re-order Frequency
Re-order
Level
A
6 Mths
5 Mths
11 Mths
1 Mth
12 Mths
B
7
#1
5
12
3
#1
15
#
C
9
5
=
14
11
6
#:
20
11
Notes:
(1)
(2)
Spare parts can be grouped into three classes according to
the resultant value of their consumption rate multiplied
by their standard price.
Class A represent appro. 70% of consumption in value
Class B represent appro. 20% of consumption in value
Class C represent appro. 10% of consumption in.value.
The consumption rate used is the average monthly consumption
of the previous 6 months.
(3) Lead time is the rime of shipment and the time for placing an order,
Special Ordering of Spare Parts
Under the following circumstances, normal ordering procedure
of spare parts will not (unless the Commissioner otherwise directs) apply:
(a) Items with fluctuating monthly consumption by judgment of
KMB's Store Controller as to when and how to order.
(b) Items expensive in value but with low consumption rate e.g. :-