Abstract
In semiconductor equipment industry, it is important to have machine down repaired within customer required time-based service level to lower any cost because of machine down case. For preventing from the lost, the general solution of equipment provider usually would be to have backup spares for replacement in time, but it costs high if they backup all spares. Therefore, it becomes a major issue to decide how many quantities should stock in each region to support customer required time-based service level in considerable cost reduction. Features of service parts logistics problem are very low random demand, high part cost, target time-based service levels, and inventory sharing or ELTs to utilize inventory across multiple stocking locations. In this study, we are looking for a suitable model for the case company in current published literature globally, and implement it in the case company to solve their inventory problem. The result shows that not only higher time-based service level in the case company and lower inventory level (means lower cost) but also build up a collaborated network between regional warehouse and save inventory holding cost for each regional warehouse.