MRO operations can be categorised by whether the product remains the property of the customer, i.e. a service is being offered, or whether the product is bought by the reprocessing organisation and sold to any customer wishing to make the purchase. (Guadette, 2002)

The former of these represents a closed loop supply chain and usually has the scope of maintenance, repair or overhaul of the product. The latter of the categorisations is an open loop supply chain and is typified by refurbishment and remanufacture. The main characteristic of the closed loop system is that the demand for a product is matched with the supply of a used product. Neglecting asset write-offs and exceptional activities the total population of the product between the customer and the service provider remains constant
Maintenance types

Maintenance typesMaintenance types
Generally speaking, there are two types of maintenance in use:

• Corrective maintenance, where equipment is maintained after break down. This maintenance is often most expensive because worn equipment can damage other parts and cause multiple damage.
• Preventive maintenance, where equipment is maintained before break down occures. This type of maintenance has many different variations and is subject of various researches to determine best and most efficient way to maintain equipment. Recent studies have shown that Preventive maintenance is effective in preventing age related failures of the equipment. For random failure patterns which amount to 80% of the failure patterns, condition monitoring proves to be effective.