This research focuses on cost reduction in the logistical system of the Engine Shop of the KLM. This logistical system is complex of nature and involves very high material costs. The research emphasises on inventory cost reductions. A comprehensive system analysis has been performed that gives insights in the logistical processes of the Engine shop. A data analysis has been executed to evaluate the logistical performance of the engine shop and helped to derive to the root of problems. This report suggests five alternatives that can jointly result in a significant reduction in capital employed in the engine shop’s inventories. The alternatives give suggestions for improvements that require almost no investments nor structural changes, which facilitates acceptation and eases implementation. The research can give insights, also for third parties, in how cost savings can be obtained in the field of inventory control in a high tech MRO (Maintenance, Repair and Overhaul) shop.