Reverse supply chain coordination and design for profitable returns-an example of ink cartridge

Bai, Hua

Etd

Reverse supply chain coordination and design for profitable returns-an example of ink cartridge

Public

Products at the end of life cycles that are thrown away by the consumers can be harmful to the environment, but could create additional profit as each product or part of the materials of the product can be remanufactured or refurbished and then resold in the market. In this paper, using the ink cartridge as an example, we first describe the product return process, then present the mechanisms for coordinating the customers, the retailers and the manufacturers in order to lure the customers to return the used items while simultaneously presenting potential profits for both the retailers and manufacturers. According to characteristics of ink cartridge industry, an alternative reverse supply chain design is proposed, where partnership is built between OEM and 3rd party refiller to better attract ink cartridge return. Further comparison analysis is conducted to find out which design is better under different circumstances.

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