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A Decision Support System to Optimize Production Quantities with Respect to Product Phase-Out Costs

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Operations Research Proceedings 2021 (OR 2021)

Part of the book series: Lecture Notes in Operations Research ((LNOR))

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Abstract

The increasing pressure to innovate requires that products are replaced by successor products at ever shorter intervals. Manufacturing companies are therefore increasingly faced with the planning of product phase-outs. A central question in the planning of phase-outs is how many units of the discontinued products should still be manufactured before their fabrication is ceased. At Leica Geosystems, a production company in the surveying industry, this decision-making process takes place in dedicated interdepartmental planning meetings. In this paper, we describe a Decision Support System that enables the management to develop different phase-out scenarios, compare them with each other, and thus make informed planning decisions.

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Notes

  1. 1.

    Measured under Microsoft ® Windows® 10 using the Matlab® 2020a MILP solver on Intel® Core TM i7 CPU@1.9 GHz.

References

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Authors and Affiliations

  1. Institute of Modeling and Simulation, Eastern Switzerland University of Applied Sciences, 9000, St. Gallen, Switzerland

    Fabian Leuthold, Katrin Hügel & Harold Tiemessen

  2. Leica Geosystems AG, 9435, Heerbrugg, Switzerland

    Oliver Mörl

Authors
  1. Fabian Leuthold
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  2. Katrin Hügel
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  3. Oliver Mörl
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  4. Harold Tiemessen
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Corresponding author

Correspondence to Fabian Leuthold .

Editor information

Editors and Affiliations

  1. Department of Business Administration, University of Bern, Bern, Switzerland

    Norbert Trautmann

  2. Department of Business Administration, University of Bern, Bern, Switzerland

    Mario Gnägi

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© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

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Cite this paper

Leuthold, F., Hügel, K., Mörl, O., Tiemessen, H. (2022). A Decision Support System to Optimize Production Quantities with Respect to Product Phase-Out Costs. In: Trautmann, N., Gnägi, M. (eds) Operations Research Proceedings 2021. OR 2021. Lecture Notes in Operations Research. Springer, Cham. https://doi.org/10.1007/978-3-031-08623-6_12

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