Accession Number:

ADA625159

Title:

A Real Options Approach to Quantity and Cost Optimization for Lifetime and Bridge Buys of Parts

Descriptive Note:

Briefing charts

Corporate Author:

MARYLAND UNIV COLLEGE PARK CENTER FOR ADVANCED LIFE CYCLE ENGINEERING (CALCE)

Personal Author(s):

Report Date:

2015-05-01

Pagination or Media Count:

20.0

Abstract:

When a part becomes obsolete, lifetime buy is a mitigation approach that involves the purchase and storage of a part in a sufficient quantity to meet current and expected future demands. The opportunity to make lifetime buys is usually offered by manufacturers prior to part discontinuance. Lifetime buys play a role in nearly every part obsolescence management portfolio. Advantages of Lifetime Buys Design modifications and re-qualification is not required. Original warranty on parts from the manufacturer is available. Management often views lifetime buys as a straightforward option.

Subject Categories:

  • Economics and Cost Analysis
  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE