Material Requirements Planning under Phase-out Conditions

Regina Wagner and Thorsten Blecker

A chapter in Operational Excellence in Logistics and Supply Chains: Optimization Methods, Data-driven Approaches and Security Insights, 2015, pp 73-95 from Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management

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.

Keywords: Phase-Out; Product Elimination; Production Planning and Control; Remaining Stock Costs (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hiclch:209282

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