Opportunity costs of a spare parts storage – a case study in a crushing soy industry
International Journal of Development Research
Opportunity costs of a spare parts storage – a case study in a crushing soy industry
Received 14th February, 2021; Received in revised form 06th March, 2021; Accepted 11th April, 2021; Published online 30th May, 2021
Copyright © 2021, Renan Lorenzi Tori, Wyrllen Everson de Souza and Roberto Ribeiro Neli. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The amount of money used to purchase spare parts that are kept in storage may represent a substantial opportunity cost, therefore it could be allocated in process improvements, resulting in better efficiency and bigger profits. Then, this article, besides presenting a literature review about spare parts storage accounting, it shows that the opportunity cost might represent up to 40% of the value of the spare part.
