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

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  • Wochner, Sina
  • Grunow, Martin
  • Staeblein, Thomas
  • Stolletz, Raik

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.

Suggested Citation

  • Wochner, Sina & Grunow, Martin & Staeblein, Thomas & Stolletz, Raik, 2016. "Planning for ramp-ups and new product introductions in the automotive industry: Extending sales and operations planning," International Journal of Production Economics, Elsevier, vol. 182(C), pages 372-383.
    • Handle: RePEc:eee:proeco:v:182:y:2016:i:c:p:372-383
    DOI: 10.1016/j.ijpe.2016.07.008
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    References listed on IDEAS

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    Cited by:

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    2. Christian Weckenborg & Karsten Kieckhäfer & Thomas S. Spengler & Patricia Bernstein, 2020. "The Volkswagen Pre-Production Center Applies Operations Research to Optimize Capacity Scheduling," Interfaces, INFORMS, vol. 50(2), pages 119-136, March.
    3. Tobias Kreuter & Luiz Felipe Scavarda & Antonio Márcio Tavares Thomé & Bernd Hellingrath & Marcelo Xavier Seeling, 2022. "Empirical and theoretical perspectives in sales and operations planning," Review of Managerial Science, Springer, vol. 16(2), pages 319-354, February.
    4. Ben Ali, M. & D’Amours, S. & Gaudreault, J. & Carle, M-A., 2018. "Configuration and evaluation of an integrated demand management process using a space-filling design and Kriging metamodeling," Operations Research Perspectives, Elsevier, vol. 5(C), pages 45-58.
    5. Juan Manuel García Sánchez & Xavier Vilasís Cardona & Alexandre Lerma Martín, 2022. "Influence of Car Configurator Webpage Data from Automotive Manufacturers on Car Sales by Means of Correlation and Forecasting," Forecasting, MDPI, vol. 4(3), pages 1-20, July.
    6. Eduardo Gutiérrez González & Olga Vladimirovna Panteleeva, 2020. "A model for planning and optimizing an engineering company production," OPSEARCH, Springer;Operational Research Society of India, vol. 57(3), pages 669-699, September.
    7. Bersch, Christopher V. & Akkerman, Renzo & Kolisch, Rainer, 2021. "Strategic planning of new product introductions: Integrated planning of products and modules in the automotive industry," Omega, Elsevier, vol. 105(C).

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