A procedure for the optimal phase-out of product lines

The phasing out of products is not an uncommon occurrence in times of rapid technological change. The problem of terminating the production of complex apparatus is compounded when it involves entire families of related products. This paper describes a linear programming procedure that establishes an...

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Bibliographic Details
Published in:IEEE transactions on engineering management 1971-11, Vol.EM-18 (4), p.139-146
Main Author: Schinzinger, Roland
Format: Article
Language:English
Subjects:
Assembly
Bills of materials
Instruments
Investments
Linear programming
Marketing and sales
Online Access:Get full text
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Summary:The phasing out of products is not an uncommon occurrence in times of rapid technological change. The problem of terminating the production of complex apparatus is compounded when it involves entire families of related products. This paper describes a linear programming procedure that establishes an optimal policy of phase-out so that the final production runs will reduce the terminal inventory consistent with maximum income at an acceptable return on investment.
ISSN:0018-9391
1558-0040
DOI:10.1109/TEM.1971.6448352