Proceedings of the 2007 Aging Aircraft Conference

Lifetime Buy Optimization to Minimize Lifecycle Cost

Dan Feng, Pameet Singh, Peter Sandborn
CALCE, Department of Mechanical Engineering
University of Maryland
College Park, MD 20742


Mismatches between electronic part procurement lifecycles and the lifecycles of the products that they are used in cause products with long manufacturing and/or support lives to incur significant obsolescence management costs. Lifetime buy is one of the most prevalent mitigation approaches employed for electronic part obsolescence management. Making lifetime purchases of parts when they go obsolete involves managing many interacting influences and multiple concurrent buys for multiple parts. The focus of this paper is optimizing lifetime buy quantities by minimizing lifecycle cost. There are multiple factors that contribute to the lifecycle cost associated with a lifetime buy: procurement cost, inventory cost, disposal cost, and penalty cost.

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