Dynamic buy-back for product recovery in end-of-life spare parts procurement
Résumé
The efficient supply of spare parts is of prime concern for OEM's. While manufacturing the parent product, spare parts can be sourced efficiently by using existing manufacturing facilities. This situation completely changes once the OEM ceases production of the parent product. Next to traditional spare parts sources in form of final order and remanufacturing, the option to buy back parts or products provides a viable alternative in the end-of-life phase. This can prevent the OEM from fulfilling his spare parts availability obligation or increase his ability to remanufacture. Current practice in industry is on the one hand to offer trade-in campaigns to acquire functional products from customers by giving substantial discounts on a new generation product. On the other hand, trade-in rebates are given when customers return their broken parts in exchange for spare parts. We propose consideration of a third option, i.e.\ to buy back broken products in order to improve control demand for spare parts and supply of recoverable parts. This contribution seeks to assess the potential benefit of buy-back strategies in contrast to both traditional sourcing and trade-in campaigns for different settings regarding information availability and buy-back flexibility. For each situation, a MILP formulation is presented, and in a numerical study we analyze circumstances under which buy-back of broken products is especially beneficial for the OEM.
Domaines
Sciences de l'ingénieur [physics]
Origine : Fichiers produits par l'(les) auteur(s)
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