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Material Requirements Planning under Phase-out Conditions

In: Operational Excellence in Logistics and Supply Chains: Optimization Methods, Data-driven Approaches and Security Insights. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 22

Author

Listed:
  • Wagner, Regina
  • Blecker, Thorsten

Abstract

In today's production environment with shortened product lifecycles, phase-outs, i.e. product elimination from production, become regular events. Badly planned phase-outs lead to high remaining stock levels after end of production, causing immense sunk costs. Previously performed 26 interviews revealed that this is a major challenge in current production (Grussenmeyer and Blecker, 2014; Grussenmeyer, Gencay and Blecker, 2014). Therefore, the objective of this paper is to develop a material requirements planning focusing on remaining stock induced costs during phase-out to plan optimal phase-out quantity and phase-out date. The research is conceptually driven and proposes an example of the methodology.

Suggested Citation

  • Wagner, Regina & Blecker, Thorsten, 2015. "Material Requirements Planning under Phase-out Conditions," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Blecker, Thorsten & Kersten, Wolfgang & Ringle, Christian M. (ed.), Operational Excellence in Logistics and Supply Chains: Optimization Methods, Data-driven Approaches and Security Insights. Proceedings of the Hamburg , volume 22, pages 73-95, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
  • Handle: RePEc:zbw:hiclch:209282
    DOI: 10.15480/882.1265
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    References listed on IDEAS

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    1. K Sahyouni & R C Savaskan & M S Daskin, 2010. "The effect of lifetime buys on warranty repair operations," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(5), pages 790-803, May.
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