Material Requirements Planning under Phase-out Conditions

TitleMaterial Requirements Planning under Phase-out Conditions
Publication TypeConference Paper
Year of Publication2015
AuthorsWagner, R, Blecker, T
EditorBlecker, T, Kersten, W, Ringle, CM
Title of ProceedingsOperational Excellence in Logistics and Supply Chains
Conference LocationHamburg
ISBN Number978-3-7375-4056-8
Other NumbersISSN (print) 2365-4430, ISSN (online) 2365-5070
KeywordsPhase-Out, Product Elimination, Production Planning and Control, Remaining Stock Costs

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.