European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.14, No.12, 2022 97 Arena Simulation of Spare Parts Inventory Management: A Case of A Telecom Managed Service Provider Precious Doe * University of Ghana Business School, Department of Operations & Management Information Systems, P. O. Box LG 78, Legon, Accra. * Email of corresponding author: pdoe009@st.ug.edu.gh or doe@optimumstrategies.org Abstract Telecommunications and utilities companies, among other large service organisations, confront a slew of decision-making challenges, many of which are connected to the management of a variety of different resources. The management of spare parts and inventories is one of the most difficult resource management concerns that an organisation has to deal with on a regular basis. Their prompt availability may have a significant influence on the overall quality of the service and the level of client satisfaction. The purpose of the study was to assess the Spare Parts Inventory Management of XYZ company operating within the Ghanaian telecommunication ecosystem. Data on demand and inventory stock level was collected from the procurement department of XYZ company. The study adopted the use of the Arena Simulation model to analyze data collected from the XYZ company. The results of the analysis indicated that the procurement department is unable to meet the spare parts demand of the Passive department where the average order received from the department in a day is 6.08. Based on the findings of the study, it is recommended that the procurement department put in measure to receive and process orders in time. The reason for the delay in processing orders could be the less poor inventory management practices of the company. The study recommends that systems be adopted to track the inventory level of the company. Due to the stochastic nature of the demand from the passive department, the company should be proactive in the management of the demand by keeping the right stock level in order to meet the demand of the department in order to reduce the long down time. Key words: Spare parts, inventory, Arena Simulation, telecommunication DOI: 10.7176/EJBM/14-12-10 Publication date:June 30 th 2022 1. Introduction Maintenance expenses may be more readily managed and lowered when maintenance planning is used. When it comes to maintenance expenses, they encompass not only the price of personnel and spare parts (Chen et al., 2015), but also the costs of equipment downtime as a result of equipment failure. Because it has an impact on the downtime of equipment in the passive telecommunications industry, an efficient and effective spare parts management system is vital for maintenance management in this sector. So, the administration of operational equipment replacement parts influences the performance of maintenance management and, as a result, the Service Level Agreements (SLA) that businesses provide to their customers and clients. High availability and dependability of operating equipment are necessary in businesses that rely heavily on their equipment to function properly. As a result, spare parts are a valuable resource for ensuring continuous availability (Roda et al., 2014). Spare parts inventory management has the capability of assisting in the provision of maintenance services, such as ensuring the operability of the systems that have been installed. Maintaining large inventories of spare parts, on the other hand, is a crucial problem since it requires a big amount of capital and often results in related expenses accounting for a significant portion of capital investments (Kennedy et al., 2002). Spare parts are used in a large number of maintenance interventions, and the inventory costs associated with them can be divided into two categories: inventory costs associated with holding stock and inventory costs associated with the non- existence of a spare part associated with operation stoppages. In many ways, spare parts inventories differ from inventories of finished goods and raw materials (Kennedy et al., 2002). A substantial cost magnitude is associated with spare parts, as is intermittent and extremely irregular demand. Spare parts stocks are governed by demand, which is triggered by preventive and corrective maintenance actions. To minimise the likelihood of equipment failure, significant downtime, and high costs, the availability of replacement parts should be tightly linked to maintenance schedules. Inventory and maintenance management