Hewlett-Packard Company Unlocks the Value Potential from Time-Sensitive Returns

V. Daniel R. Guide (), Luc Muyldermans () and Luk N. Van Wassenhove ()
Additional contact information
V. Daniel R. Guide: Department of Supply Chain and Information Systems, Smeal College of Business, Pennsylvania State University, University Park, Pennsylvania 16802
Luc Muyldermans: Nottingham University Business School, Jubilee Campus, Wollaton Road, Nottingham NG8 1BB, United Kingdom
Luk N. Van Wassenhove: INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France

Interfaces, 2005, vol. 35, issue 4, 281-293

Abstract: Hewlett-Packard (HP) and other companies producing short life-cycle products with rapid value erosion squander the opportunity to profit from returned time-sensitive products when they treat them as a nuisance. Instead of focusing on cost minimization and technical quality, they should recognize returns as a value stream and maximize the revenue from smart and fast disposition, proper refurbishment, and prompt resale through the appropriate channels. We worked on a project with Hewlett-Packard’s remarketing group to unlock the value potential of time-sensitive returns. We analyzed data using simple calculations to reveal the major drivers and magnitude of potential value recovery, and we used simple operations research flow models to evaluate new design and policy options for the reverse supply chain. HP benefited from an integrated end-to-end business approach to product returns.

Keywords: industries: computer; electronic; inventory/production: perishable; aging items (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.1050.0145 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:35:y:2005:i:4:p:281-293

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().