Integrating Closed-Loop Supply Chains and Spare-Parts Management at IBM

Moritz Fleischmann, Jo A. E. E. van Nunen () and Ben Gräve ()
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Jo A. E. E. van Nunen: Rotterdam School of Management/Faculteit Bedrijfskunde, Erasmus University Rotterdam, PO Box 1738, 3000 DR Rotterdam, The Netherlands
Ben Gräve: Global Service Logistics, ITS, IBM Nederland N.V., Johan Huizingalaan 761, 1066 VH Amsterdam, The Netherlands

Interfaces, 2003, vol. 33, issue 6, 44-56

Abstract: IBM is among the pioneers recognizing the benefits of closed-loop supply chains that integrate product returns into business operations. We worked on a project exploiting product returns as a source of spare parts. Key decisions concern what recovery opportunities to use, the channel design, and coordinating alternative supply sources. Our analytic inventory-control model and a simulation model showed that procurement-cost savings largely outweigh reverse logistics costs and that information management is essential. These findings provide a basis for significantly expanding the usage of the novel parts supply source, thereby cutting procurement costs.

Keywords: Industries: computer; electronic. Inventory; production: policies (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (48)

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http://dx.doi.org/10.1287/inte.33.6.44.25189 (application/pdf)

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Working Paper: Integrating Closed-loop Supply Chains and Spare Parts Management at IBM (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:33:y:2003:i:6:p:44-56

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