VALuAtION OF ROtAbLE SPARE PARtS Aalto（估值ROtAbLE备件阿尔托）.pdf

Jani Kilpi VALuAtION OF ROtAbLE SPARE PARtS HELSINKI SCHOOL OF ECONOMICS WORKING PAPERS W-438 Jani Kilpi Valuation of Rotable SpaRe paRtS logostics november 2007 HelSinGin KauppaKoRKeaKoulu HelSinKi SCHool of eConoMiCS WoRKinG papeRS W-438 HelSinGin KauppaKoRKeaKoulu HelSinKi SCHool of eConoMiCS pl 1210 fi-00101 HelSinKi finlanD © Jani Kilpi and Helsinki School of economics iSSn 1235-5674 (electronic working paper) iSbn 978-952-488-197-5 Helsinki School of economics - HSe print 2007 Jani Kilpi Valuation of Rotable Spare Parts HSE/Logistics Abstract Rotable spare parts are insurance-like assets that are kept available to maximise the utilisation of the supported production equipment. Financially, they are easily treated like regular production equipment even if their value preserving characteristics would require different treatment. In this study, the two functional roles of rotable parts are identified and a distinction between the spare part role and the production asset role is made in the financial sense. This study also shows that the most suitable method for the valuation of rotable spare parts is th