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Design refresh planning models for managing obsolescence

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  • Liyu Zheng
  • Janis Terpenny
  • Peter Sandborn

Abstract

Fast moving technologies cause high-tech components to have shortened life cycles, rendering them quickly obsolete. Obsolescence is a significant problem for systems whose operational and support life is much longer than the procurement lifetimes of their constituent components. Long field-life systems such as aircraft, ships, and other systems require many updates of components and technology over their life to remain in manufacture and supportable. Design refresh planning is a strategic way of managing obsolescence. In this article, efficient mathematical models based on Integer Programming for design refresh planning are developed to determine the plan that minimizes the total obsolescence management costs. Decisions are made on when to execute design refreshes (dates) and what obsolete/non-obsolete system components should be replaced at a specific design refresh. Data uncertainty is also considered and obsolescence dates of the components are assumed to follow specific probability distributions. With this approach, different scenarios of executing design refreshes and the probabilities of adopting these scenarios can be determined. The final optimal cost becomes an expected value. An example of an electronic engine control unit is included for demonstration of the developed models.

Suggested Citation

  • Liyu Zheng & Janis Terpenny & Peter Sandborn, 2015. "Design refresh planning models for managing obsolescence," IISE Transactions, Taylor & Francis Journals, vol. 47(12), pages 1407-1423, December.
    • Handle: RePEc:taf:uiiexx:v:47:y:2015:i:12:p:1407-1423
    DOI: 10.1080/0740817X.2014.999898
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    Cited by:

    1. Shi, Zhenyang & Liu, Shaoxuan, 2020. "Optimal inventory control and design refresh selection in managing part obsolescence," European Journal of Operational Research, Elsevier, vol. 287(1), pages 133-144.
    2. Amankwah-Amoah, Joseph, 2017. "Integrated vs. add-on: A multidimensional conceptualisation of technology obsolescence," MPRA Paper 86353, University Library of Munich, Germany.
    3. Imen Zaabar & Raul Arango-Miranda & Yvan Beauregard & Marc Paquet, 2021. "A Sustainable Multicriteria Decision Framework for Obsolescence Resolution Strategy Selection," Sustainability, MDPI, vol. 13(15), pages 1-16, August.

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