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The redesign of a warranty distribution network with recovery processes

Author

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  • Ashayeri, Jalal
  • Ma, Ning
  • Sotirov, Renata

Abstract

A warranty distribution network provides aftersales warranty services to customers and resembles a closed-loop supply chain network with specific challenges for reverse flows management like recovery, repair, and reflow of refurbished products. We present here a nonlinear and nonconvex mixed integer programming model for the design of the warranty distribution network of a semiconductor company which is operated by an outsourced third party logistics service provider. The application of the model to the real-life case provides an improved distribution network flow and rearranged warehouse and recovery locations, and resulted in weekly cost savings of 3.4% for the considered item.

Suggested Citation

  • Ashayeri, Jalal & Ma, Ning & Sotirov, Renata, 2015. "The redesign of a warranty distribution network with recovery processes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 184-197.
  • Handle: RePEc:eee:transe:v:77:y:2015:i:c:p:184-197
    DOI: 10.1016/j.tre.2015.02.017
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    References listed on IDEAS

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    1. Murthy, D. N. P. & Solem, O. & Roren, T., 2004. "Product warranty logistics: Issues and challenges," European Journal of Operational Research, Elsevier, vol. 156(1), pages 110-126, July.
    2. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November.
    3. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    4. Kutanoglu, Erhan & Lohiya, Divi, 2008. "Integrated inventory and transportation mode selection: A service parts logistics system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 665-683, September.
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    Cited by:

    1. Amin Yazdekhasti & Yahia Zare Mehrjardi, 2020. "Two-echelon three-indenture warranty distribution network: a hybrid branch and bound, Monte-Carlo approach," Operational Research, Springer, vol. 20(2), pages 1113-1158, June.
    2. Cannella, Salvatore & Bruccoleri, Manfredi & Framinan, Jose M., 2016. "Closed-loop supply chains: What reverse logistics factors influence performance?," International Journal of Production Economics, Elsevier, vol. 175(C), pages 35-49.

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