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Life-Cycle Planning in Closed-Loop Supply Chains: A Study of Refurbished Laptops

Nowak, Thomas and Lechner, Gernot (2016) Life-Cycle Planning in Closed-Loop Supply Chains: A Study of Refurbished Laptops. WU Vienna University of Economics and Business, Vienna.

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Abstract

Waste electrical and electronic equipment (WEEE) is one of the fastest growing waste streams. Therefore, the reduction of discarded electronic equipment is of immense importance in order to reduce virgin material consumption and hence the environmental impact associated with the production and consumption of consumer electronics. Using the market for new and refurbished laptops as a reference industry, a typical life-cycle of a laptop including refurbishment and resale of the returned product is modeled and analyzed in order to explore the related profitability. Therefore, we first investigate actual market prices of new and refurbished laptops using data gathered from bestbuy.com. Subsequently, we introduce a newsvendor model where we use the insights into pricing of these products obtained from the empirical study. The model integrates different reverse channels like recycling or disposal which have a crucial impact on the original equipment manufacturer's optimal decision making. Our studies highlight how the return rate and fractions of returned cores that are refurbished by the OEM as well as new and refurbished product prices are interrelated and in uence the OEMs production decision problem. (authors' abstract)

Item Type: Paper
Divisions: Departments > Welthandel > Transportwirtschaft und Logistik
Depositing User: ePub Administrator
Date Deposited: 27 May 2016 11:31
Last Modified: 27 May 2016 12:44
URI: http://epub.wu.ac.at/id/eprint/5060

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