Journal article

Strategic Proactive Obsolescence Management Model

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Publication Details

Author list: OLSSON L, THÖRNBERG B, Meng X, Meng X, THÖRNBERG B, OLSSON L

Publisher: IEEE Components, Packaging, and Manufacturing Technology Society

Publication year: 2014

Start page: 1099

End page: 1108

Number of pages: 10

ISSN: 2156-3950

DOI: http://dx.doi.org/10.1109/TCPMT.2014.2316212

View additional information: View in Web of Science


Abstract

When there is a demand larger than the corresponding number of components in stock, obsolescence problems may occur for those systems with a life cycle longer than that of one or more of their components, such as automotive, avionics, military application, etc. This paper discusses the electronic component obsolescence problem and presents a formal mathematical strategic proactive obsolescence management model for long life cycle systems.

The model presented in this paper utilizes redesign and last-time-buy (LTB) as two management methods. LTB cost is estimated by unit cost, demand quantities, buffer, discount rate and holding cost. Redesign cost is associated with component type and quantities.

This model can estimate the minimum management costs for a system with different architectures. It consists of two parts. The first is to generate a graph, which is in the form of an obsolescence management diagram. A segments table containing the data of this diagram is calculated and prepared for optimization at a second step. This second part is to find the minimum cost for system obsolescence management. Mixed integer linear programming (MILP) is used to calculate the minimum management cost and schedule. The model is open sourced allowing other research groups to freely download and modify it.

A display and control system case study is shown to apply this model practically. A reactive manner is presented as a comparison. The result of the strategic proactive management model shows significant cost avoidance as compared to the reactive manner.


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