| Abstract: | Life‐cycle mismatch occurs when the life cycles of parts end before the life cycles of the products in which those parts are used. Lifetime buys are one tactic for mitigating the effect of part obsolescence, where a quantity of parts is purchased for the remaining life of a product. We extend prior work that determines optimal lifetime buy quantities for one product with one obsolete part by providing an analytic solution and two simple heuristic policies for the optimal lifetime buy quantities when many parts become obsolete over a product's life cycle. We determine which of our two heuristics is most accurate for different product life cycles, which yields a metaheuristic with increased accuracy. That analysis also reveals critical perspectives in making lifetime buy decisions with nonstationary life‐cycle demand patterns. |
