By Baptiste Lebreton PhD (auth.)
Closed loops depict provide chains for which unique Equipement producer reintegrate their lower back items into their very own creation community. whereas the opposite logistics learn has broadly addressed the technical elements of product reintegration, only a few insights can be found on even if OEMs may still dedicate themselves to a closed-loop. The constitution of the monograph is aligned to the decision-making technique of unique apparatus brands prepared to enquire the potential for closed-loops. This decision-making approach is established round basic questions managers are anticipated to reply to ahead of operating a round provide chain: Does a closed-loop healthy with the company goals? Is it ecocnomic to run a closed-loop? How should still OEMs care for free-riders’ pageant? Which product/technology/location setup ends up in a profit-maximizing provide chain? The making plans framework is ultimately utilized to 2 case experiences from the tire and the pc industry.
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Closed loops depict offer chains for which unique Equipement producer reintegrate their lower back items into their very own creation community. whereas the opposite logistics examine has greatly addressed the technical elements of product reintegration, only a few insights can be found on even if OEMs may still devote themselves to a closed-loop.
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Extra info for Strategic Closed-Loop Supply Chain Management
The premium segment accepts only new items while the low-budget segment prefers cheaper recovered items and spend the rest of their budget for procuring new items. Atasu et al. (2005) adopt the same modeling approach to analyze the cannibalization eﬀects between new and remanufactured products and depict the customers willing to buy refurbished items green customers while these are only price-sensitive. 2). The mathematical model is directed with help of ﬁve sequential key parameters which are all positive.
13) represents the quantity of new items sold while πN depicts the life-cycle value of a new item (eq. 14). 14) LC , we notice the assignment of Concerning the life-cycle value πN process costs for all potential recovery strategies to the initial product sales. These are balanced with the additional revenues obtained from reuse and remanufacturing. On the basis of this uniﬁed approach, we are able to compare the impact of the three core asset recovery strategies on a ﬁrm’s proﬁt with the help of a modiﬁcation of the key factors.
With help of the present model, we are able to state that the book value inv reu of potentially reusable items is equal to the marginal proﬁt generated by these products. Thus, π reu . inv reu = CLSC ω In the present model, remanufacturing diﬀers from reuse as we consider that refurbished items are repaired and their defective parts removed. The fraction of the reusable parts has then to be taken into account. The resulting proﬁt remanufacturing function is depicted in eq. 32. 32) If all parts are reused (β = 1), then we obtain a similar proﬁt funcreu .