A Case Study of Pratt and Whitney Aircraft's Commercial Spares Planning1

This case study, which can be used as a teaching case, deals with jet engine spare parts planning at Pratt and Whitney Aircraft Company, a division of United Technologies Corporation. The case includes background on the company's history and an overview of their jet engine manufacturing operations. The primary focus of the case is on the application and evaluation of forecasting models for demand planning within an ERP system environment. An Excel-based decision support system (DSS), which is available from the authors upon request, enables the evaluation of alternative time series forecasting models for a variety of jet engine spare parts. The DSS workbook replicates the many features and options available in SAP's forecasting system, which has been purchased by Pratt and Whitney.