IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v68y2017i9d10.1057_s41274-016-0142-y.html
   My bibliography  Save this article

After-sales services network design of a household appliances manufacturer

Author

Listed:
  • F. Tevhide Altekin

    (Sabancı University)

  • Ezgi Aylı

    (Sabancı University)

  • Güvenç Şahin

    (Sabancı University)

Abstract

After-sales services have become high-margin businesses that account for larger portions of corporate profits. Delivering the after-sales services is challenging as after-sales services supply chains are significantly different than production–distribution supply chains. The literature provides little guidance on the use of quantitative methods for after-sales services network design. We present a mixed integer linear programming problem formulation to determine warehouse locations, assign repair vendors to facilities and choose mode of transportation while minimizing the total network cost. We transform the large-scale real-life problem of a household appliances manufacturer into a smaller scale to solve optimally in reasonable time. Through a scenario-based approach, we evaluate different configurations of a decentralized network with choices of transportation mode. We test the sensitivity of the solutions. The total cost decreases with additional choices of transportation mode and only slightly increases with the next-day delivery policy while the network solution may change significantly.

Suggested Citation

  • F. Tevhide Altekin & Ezgi Aylı & Güvenç Şahin, 2017. "After-sales services network design of a household appliances manufacturer," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(9), pages 1056-1067, September.
    • Handle: RePEc:pal:jorsoc:v:68:y:2017:i:9:d:10.1057_s41274-016-0142-y
    DOI: 10.1057/s41274-016-0142-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41274-016-0142-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41274-016-0142-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ronald H. Ballou, 2001. "Unresolved Issues in Supply Chain Network Design," Information Systems Frontiers, Springer, vol. 3(4), pages 417-426, December.
    2. 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.
    3. M N Jalil & R A Zuidwijk & M Fleischmann & Jo A E E van Nunen, 2011. "Spare parts logistics and installed base information," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(3), pages 442-457, March.
    4. David F. Rogers & Robert D. Plante & Richard T. Wong & James R. Evans, 1991. "Aggregation and Disaggregation Techniques and Methodology in Optimization," Operations Research, INFORMS, vol. 39(4), pages 553-582, August.
    5. Morris Cohen & Pasumarti V. Kamesam & Paul Kleindorfer & Hau Lee & Armen Tekerian, 1990. "Optimizer: IBM's Multi-Echelon Inventory System for Managing Service Logistics," Interfaces, INFORMS, vol. 20(1), pages 65-82, February.
    6. Morris A. Cohen & Yu-Sheng Zheng & Yunzeng Wang, 1999. "Identifying Opportunities for Improving Teradyne's Service-Parts Logistics System," Interfaces, INFORMS, vol. 29(4), pages 1-18, August.
    7. 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.
    8. Eskandarpour, Majid & Zegordi, Seyed Hessameddin & Nikbakhsh, Ehsan, 2013. "A parallel variable neighborhood search for the multi-objective sustainable post-sales network design problem," International Journal of Production Economics, Elsevier, vol. 145(1), pages 117-131.
    9. Saccani, N. & Johansson, P. & Perona, M., 2007. "Configuring the after-sales service supply chain: A multiple case study," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 52-69, October.
    10. Bacchetti, Andrea & Saccani, Nicola, 2012. "Spare parts classification and demand forecasting for stock control: Investigating the gap between research and practice," Omega, Elsevier, vol. 40(6), pages 722-737.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mydyti Hyrmet & Kadriu Arbana & Pejic Bach Mirjana, 2023. "Using Data Mining to Improve Decision-Making: Case Study of A Recommendation System Development," Organizacija, Sciendo, vol. 56(2), pages 138-154, May.
    2. Zerbino, Pierluigi & Stefanini, Alessandro & Aloini, Davide, 2021. "Process Science in Action: A Literature Review on Process Mining in Business Management," Technological Forecasting and Social Change, Elsevier, vol. 172(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dombi, József & Jónás, Tamás & Tóth, Zsuzsanna Eszter, 2018. "Modeling and long-term forecasting demand in spare parts logistics businesses," International Journal of Production Economics, Elsevier, vol. 201(C), pages 1-17.
    2. M N Jalil & R A Zuidwijk & M Fleischmann & Jo A E E van Nunen, 2011. "Spare parts logistics and installed base information," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(3), pages 442-457, March.
    3. Van der Auweraer, Sarah & Boute, Robert N. & Syntetos, Aris A., 2019. "Forecasting spare part demand with installed base information: A review," International Journal of Forecasting, Elsevier, vol. 35(1), pages 181-196.
    4. Sheikh-Zadeh, Alireza & Rossetti, Manuel D. & Scott, Marc A., 2021. "Performance-based inventory classification methods for large-Scale multi-echelon replenishment systems," Omega, Elsevier, vol. 101(C).
    5. Bacchetti, A. & Plebani, F. & Saccani, N. & Syntetos, A.A., 2013. "Empirically-driven hierarchical classification of stock keeping units," International Journal of Production Economics, Elsevier, vol. 143(2), pages 263-274.
    6. Jalil, M.N. & Zuidwijk, R.A. & Fleischmann, M. & van Nunen, J.A.E.E., 2009. "Spare Parts Logistics and Installed Base Information," ERIM Report Series Research in Management ERS-2009-002-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. Morris A. Cohen & Narendra Agrawal & Vipul Agrawal, 2006. "Achieving Breakthrough Service Delivery Through Dynamic Asset Deployment Strategies," Interfaces, INFORMS, vol. 36(3), pages 259-271, June.
    8. Van der Auweraer, Sarah & Boute, Robert, 2019. "Forecasting spare part demand using service maintenance information," International Journal of Production Economics, Elsevier, vol. 213(C), pages 138-149.
    9. Vinayak Deshpande & Morris A. Cohen & Karen Donohue, 2003. "An Empirical Study of Service Differentiation for Weapon System Service Parts," Operations Research, INFORMS, vol. 51(4), pages 518-530, August.
    10. Rego, José Roberto do & Mesquita, Marco Aurélio de, 2015. "Demand forecasting and inventory control: A simulation study on automotive spare parts," International Journal of Production Economics, Elsevier, vol. 161(C), pages 1-16.
    11. Christopher A. Boone & Benjamin T. Hazen & Joseph B. Skipper & Robert E. Overstreet, 2018. "A framework for investigating optimization of service parts performance with big data," Annals of Operations Research, Springer, vol. 270(1), pages 65-74, November.
    12. Bacchetti, Andrea & Saccani, Nicola, 2012. "Spare parts classification and demand forecasting for stock control: Investigating the gap between research and practice," Omega, Elsevier, vol. 40(6), pages 722-737.
    13. Jin, Tongdan & Tian, Yu, 2012. "Optimizing reliability and service parts logistics for a time-varying installed base," European Journal of Operational Research, Elsevier, vol. 218(1), pages 152-162.
    14. Topan, E. & Eruguz, A.S. & Ma, W. & van der Heijden, M.C. & Dekker, R., 2020. "A review of operational spare parts service logistics in service control towers," European Journal of Operational Research, Elsevier, vol. 282(2), pages 401-414.
    15. Kutanoglu, Erhan & Mahajan, Mohit, 2009. "An inventory sharing and allocation method for a multi-location service parts logistics network with time-based service levels," European Journal of Operational Research, Elsevier, vol. 194(3), pages 728-742, May.
    16. Katarzyna Grondys & Iga Kott & Anna Wiœniewska-Sa³ek, 2014. "Entrepreneurship As An Opportunity Of Development For Industrial Companies Using Logistics Centers," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 10(1), pages 45-53, December.
    17. Stip, J. & Van Houtum, G.J., 2020. "On a method to improve your service BOMs within spare parts management," International Journal of Production Economics, Elsevier, vol. 221(C).
    18. Hu, Qiwei & Boylan, John E. & Chen, Huijing & Labib, Ashraf, 2018. "OR in spare parts management: A review," European Journal of Operational Research, Elsevier, vol. 266(2), pages 395-414.
    19. Candas, Mehmet Ferhat & Kutanoglu, Erhan, 2020. "Integrated location and inventory planning in service parts logistics with customer-based service levels," European Journal of Operational Research, Elsevier, vol. 285(1), pages 279-295.
    20. Sgarbossa, Fabio & Peron, Mirco & Lolli, Francesco & Balugani, Elia, 2021. "Conventional or additive manufacturing for spare parts management: An extensive comparison for Poisson demand," International Journal of Production Economics, Elsevier, vol. 233(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:68:y:2017:i:9:d:10.1057_s41274-016-0142-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.