Article

A Decision-Making Model For Reverse Logistics In The Computer Industry

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Purpose – This paper seeks to present a decision-making model for manufacturers to maximize their
profits in reverse logistics operations.
Design/methodology/approach – A system dynamic model has been developed to complement
with prior models and is validated using data collected from a computer company manufacturer
handling returns with volumes transacted over a period of two years.
Findings – The results from the model indicate that part replacements from suppliers are more
profitable than refurbished computer parts. In addition, transportation delay and supplier delay in
processing returns have a significant impact on the viability of reverse logistics regardless of return
volumes.
Research limitations/implications – The current model is not designed for third-party logistics
(3PL) offering reverse logistics services. However, this can be accomplished by resetting some of the
parameters in the model. The other limitations are exchange rate fluctuation and product depreciation
which are not incorporated in the model. This is important in Asia where each country has its own
currency which fluctuates with time.
Practical implications – This dynamic model will assist decision-makers to test new policies
related to reverse logistics, for example, liberal versus conservative return policy from supplier,
shipment consolidation (longer delays) versus direct shipment, batch (longer delays) versus JIT
remanufacturing, pricing of new parts versus re-condition parts, as well as to examine its long-term
viability.
Originality/value – Using system dynamics to understand the profitability of reverse logistics for
both replacement parts to suppliers and refurbished parts to manufacturers.

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Ketersediaan

Informasi Detail

Judul Seri

The International Journal of Logistics Management

No. Panggil

ATC LO TAN a

Penerbit

Singapore : Emerald Insight., 2006

Deskripsi Fisik

27 p

Bahasa

English

ISBN/ISSN

0957-4093

Klasifikasi

LO

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

online resource

Edisi

Vol. 17 Iss 3 pp

Subjek

Supply Chain Management
Decision-Making
Electronics Industry
Reverse Scheduling

Info Detail Spesifik

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Pernyataan Tanggungjawab

Tan, Albert Wee Kwan

Versi lain/terkait

Lampiran Berkas

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