Dynamic After Sales Control A Life Cycle Based Approach

Technology driven industries are facing new challenges to manage the spare part business of high-quality products due to decreasing innovation cycles and increasing product complexity. An influencing factor for the total profitability is the after-sales strategy for spare parts after the end-of-production decision of a product. On the one hand the guaranteed service level can be achieved by excess stocks and expensive scrapping actions. On the other hand if out of stock situations may occur, penalties and an eventual image loss have to be taken into account. Both strategies can be combined to reduce costs significantly by using a dynamic life cycle simulation approach.