University of Twente Student Theses


Using installed base and lifecycle information to improve the final order business case at ASML

Knofius, N. (2014) Using installed base and lifecycle information to improve the final order business case at ASML.

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Abstract:Capital goods are characterized by being very expensive and having a long utilization period (often more than 30 years). During the entire lifecycle, it can occur that an original equipment manufacturer (OEM) discontinues the production of a system component. As a result, the component becomes end of life (EOL). Therefore, it needs to be decided how to fulfill remaining demand for the EOL component. Typical actions are to carry out an all-time buy which shall satisfy the remaining demand or to facilitate a redesign to obtain a substitute for the EOL component. For the latter it is usually required to carry out a last-time to fulfill the EOL component demand during the redesign. In this thesis, we developed three methods to support practitioners to cope with such situations. In the first place, we created a supply and demand forecast procedure which is based on a bootstrapping approach that is combined with lifecycle and installed base information. Moreover, an analytical approach was developed to relate EOL decisions to typical performance indicators i.e. the total cost, the stock-out probability and the excess stock. Finally, to validate both models, we developed a Monte Carlo Simulation.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics
Programme:Industrial Engineering and Management MSc (60029)
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