Abstract
This paper deals with $\ulcorner$Requirement Decision Model for Repair Parts supplied by the Government$\lrcorner$ which is to reduce Aircraft Contract Maintenance Cost. It aims to find solutions to the fundamental problems of the Aircraft Contract Maintenance System. Under the current Aircraft Contract Maintenance System, it is hard to forecast the exact demand of repair parts, so support rate of Repair Parts supplied by the Government is restricted under 50 percent. It is inevitable to purchase Repair Parts from the firm with much higher price than those of Government source. However, absence of fixed demand pattern makes it difficult to improve accuracy of demand forecast. As a solution to these problems, this model prevents a cost increase due to the unit price difference between Repair Parts supplied by the Government and Repair Parts purchased by the Firm. It also reflects demand characteristics of each repair part, and prevents continual stock increase by setting an upper limit on the amount of Repair Parts supplied by the Government. The effectiveness of this model is verified by empirical analysis using the latest raw data. By applying this model to real situation, we expect to reduce about 4 billion won every year.