  This study offers a step-by-step practical procedure from the analysis of the
current status of the spare parts inventory system to advanced service-level
analysis by virtue of simulation-optimization technique for a real-world case
study associated with a seaport. The remarkable variety and immense diversity
on one hand, and extreme complexities not only in consumption patterns but in
the supply of spare parts in an international port with technically advance
port operator machinery, on the other hand, have convinced the managers to deal
with this issue in a structural framework. The huge available data require
cleaning and classification to properly process them and derive reorder point
(ROP) estimation, reorder quantity (ROQ) estimation, and associated service
level analysis. Finally, from 247000 items used in 9 years long, 1416 inventory
items are elected as a result of ABC analysis integrating with the Analytic
Hierarchy Process (AHP), which led to the main items that need to be kept under
strict inventory control. The ROPs and the pertinent quantities are simulated
by Arena software for all the main items, each of which took approximately 30
minutes run-time on a personal computer to determine near-optimal estimations.
