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Spare parts stock calculator

Enter how many machines use the part, its MTBF, the lead time and the costs to get the lowest total cost stock, the stock for your target service level and the expected downtime from missing spares.

Pre-sizing and estimating tool: results do not replace design, calculations or reports signed by a licensed professional, nor verification against the applicable codes and standards.

Preliminary estimate
Part demand
Costs

Holding cost: cost of capital, storage, insurance, obsolescence and preservation; usually 15% to 30% per year.

Policy
Calculate from history (paste from Excel)

Paste how many parts were used in each period across all machines. Part MTBF is calculated with the number of machines and operating hours above.

See what was read
—Lowest total cost spare stock
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Service level versus stock

Probability that demand during the lead time fits within the stock. The line marks the target level.

Tap the chart to see the values.

Annual cost versus stock

Cost of holding the parts plus the expected cost of downtime when they are missing.

Tap the chart to see the values.

Table by stock quantity

The report gathers this page's inputs, results, equations, assumptions and references, with fields for project, engineer and revision. In the print dialog, choose Save as PDF.

Method, assumptions and references

Equations used

Annual use D = machines × hours per year ÷ MTBF; lead-time demand λ = D × lead time ÷ 365
Poisson: P(X = x) = e^(−λ) λˣ ÷ x!; service level with s parts = P(X ≤ s)
Expected backorders: EBO(s) = Σ (x > s) (x − s) · P(X = x) ((s − 1, s) policy, METRIC)
Annual cost = s × price × holding rate + EBO(s) × operating hours × downtime cost per hour

Assumptions and limits

  • One-for-one replenishment as soon as a part is used (base stock policy), constant lead time and independent failures at a constant rate.
  • Each missing part keeps one machine down; cannibalization and temporary fixes are not considered.
  • For wear parts with regular use, use the safety stock and reorder point calculator.

Standards and technical documents

  • Sherbrooke, C. C. Optimal Inventory Modeling of Systems: Multi-Echelon Techniques, 2nd ed. Springer, 2004
  • IEC 60300-3-12:2011: Integrated logistic support
  • EN 13306:2017: Maintenance terminology
  • ISO 55001:2024: Asset management systems

U.S. regulations

  • Treasury Regulation §1.162-3: materials and supplies, including rotable and temporary spare parts
  • ASC 360 (Property, Plant and Equipment): major spare parts capitalized and depreciated

Frequently asked questions

How many spare parts should you stock?

Compute the average demand during the replenishment lead time and use the Poisson distribution. Then compare the cost of holding each extra part with the expected downtime it avoids; the lowest total cost quantity is optimal.

Is it worth stocking a part that is almost never used?

Yes, if downtime is expensive and the lead time long. That is an insurance spare: even with rare use, expected downtime cost exceeds the cost of holding the part.

Are spare parts inventory or fixed assets?

Major spares expected to be used over more than one period are generally capitalized as property, plant and equipment (ASC 360); routine spares are materials and supplies.