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Dynamic buy-back for product recovery in end-of-life spare parts procurement

Author

Listed:
  • Rainer Kleber

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

  • Tobias Schulz

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

  • Guido Voigt

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

The efficient supply of spare parts is of prime concern for OEMs. Next to the traditional spare parts sources in form of final order and remanufacturing, the option to buy back broken products prevents the OEM from fulfilling his spare parts availability obligation in the end-of-life phase and increases his ability to remanufacture. This contribution seeks to identify optimal buy-back strategies for different settings regarding information availability and buy-back flexibility. A numerical study analyzes circumstances under which buy-back is especially beneficial for the OEM.

Suggested Citation

  • Rainer Kleber & Tobias Schulz & Guido Voigt, 2009. "Dynamic buy-back for product recovery in end-of-life spare parts procurement," FEMM Working Papers 09026, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:09026
    as

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    File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2009_Dateien/2009_26.pdf
    File Function: First version, 2009
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    References listed on IDEAS

    as
    1. Karl Inderfurth & Kampan Mukherjee, 2008. "Decision support for spare parts acquisition in post product life cycle," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 16(1), pages 17-42, March.
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    5. Huiskonen, Janne, 2001. "Maintenance spare parts logistics: Special characteristics and strategic choices," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 125-133, May.
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    Citations

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    Cited by:

    1. Karl Inderfurth & Rainer Kleber, 2010. "An Advanced Heuristic for Multiple-Option Spare Parts Procurement after End-of-Production," FEMM Working Papers 100005, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    2. Shi, Zhenyang & Liu, Shaoxuan, 2020. "Optimal inventory control and design refresh selection in managing part obsolescence," European Journal of Operational Research, Elsevier, vol. 287(1), pages 133-144.
    3. Knofius, N. & van der Heijden, M.C. & Zijm, W.H.M., 2019. "Consolidating spare parts for asset maintenance with additive manufacturing," International Journal of Production Economics, Elsevier, vol. 208(C), pages 269-280.
    4. Dwayne Cole & Burak Kazaz & Scott Webster, 2016. "Final purchase and trade-in decisions in response to a component phase-out announcement: a deterministic analysis," International Journal of Production Research, Taylor & Francis Journals, vol. 54(5), pages 1257-1272, March.

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    More about this item

    Keywords

    Inventory Management; Spare Parts Management; Reverse Logistics; Buy-back;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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