Product Recovery at the Norwegian National Insurance Administration

Nils Rudi, David F. Pyke and Per Olav Sporsheim
Additional contact information
Nils Rudi: The Simon School, University of Rochester, Rochester, New York 14627
David F. Pyke: The Amos Tuck School of Business Administration, Dartmouth College, Hanover, New Hampshire 03755
Per Olav Sporsheim: Gorm AS, Fabrikkveien 13, 6415 Molde, Norway

Interfaces, 2000, vol. 30, issue 3, 166-179

Abstract: Technical aid centers (TACs) in Norway supply devices, such as wheelchairs and hearing aids, to people with handicaps. When a device is returned to a TAC, the TAC staff must decide whether to scrap it or to refurbish it so that it can be used again. The Norwegian National Insurance Administration (NNIA) found that decision makers were scrapping units too frequently, basing their decisions mainly on the hours of labor required to refurbish. We developed a more complete decision-support-system model that accounts for the full cost of sending a unit to the landfill, the cost of refurbishing, the value of parts that can be used elsewhere, the benefits of refurbishing, and so on. Our model is quite simple and visual. Early results suggest that acceptance has been widespread and that decisions have changed, leading to fewer units being scrapped and more being refurbished for redistribution.

Keywords: GOVERNMENT—REGULATIONS; HEALTH CARE; DECISION ANALYSIS—APPLICATIONS (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (4)

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