Planning for ramp-ups and new product introductions in the automotive industry: Extending sales and operations planning

Sina Wochner, Martin Grunow, Thomas Staeblein and Raik Stolletz

International Journal of Production Economics, 2016, vol. 182, issue C, 372-383

Abstract: Sales and operations planning for ramp-ups and new product introductions in the automotive industry differs significantly from steady-state situations. We identify the ramp-up challenges in collaboration with a large European OEM. To support sales and operations planning for ramp-ups and new product introductions, we develop a mixed-integer linear programming model. In our numerical study, we show that it is necessary to consider complexity in sales and operations planning for ramp-up and new product introduction. Besides lost sales costs, complexity and demand volume are factors that need to be considered in the trade-off for the optimal sequence and timing of the start of production of variants. Furthermore, our analysis shows that rework quantities must be considered during ramp-up planning and that an extreme emphasis on fairness among markets results in less efficient operations and negatively affects sales.

Keywords: Ramp-up; New product introduction; Sales and operations planning; Automotive industry (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:182:y:2016:i:c:p:372-383

DOI: 10.1016/j.ijpe.2016.07.008

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