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Title: Outsourcing Strategy of Reverse Supply Chain Activities for a Manufacturer
Researcher: Siddhartha Kushawaha
Guide(s): A K Rao
University: ICFAI Foundation for Higher Education
Completed Date: 16/11/2016
Abstract: newline Manufacturers in India and abroad are venturing to reverse supply chain (RSC) for strategic reasons. The reasons for a manufacturer to venture into RSC are mandatory regulations, environmental awareness of customers, competition from third party recovery firms to new product sales, securing intellectual properties and assets, profit proposition from recovering residual value in used products. Industry practices recorded in RSC literature suggest that common activities constituting RSC are used products acquisition, reverse logistics, inspection-disposition, remanufacturing and (re)marketing (Atasu, et al. 2010; Blackburn et al., 2004). newlineA manufacturer engaging in RSC encounter challenges such as restricted competencies and capabilities, presence of third party firms to perform reverse supply chain activities, market competition, and variation in quantity, quality and timing of return of used products (Martin et al., 2010; Ordoobadi, 2009). A manufacturer can adapt an optimal outsourcing strategy to perform the activities involved in RSC to overcome these challenges and to realize profit (Savaskan et al. 2004, Atasu et al. 2013, Chuang et al. 2014, Lu et al. 2014, Ordoobadi 2009). newlinePast researchers had considered manufacturers facing a decision situation whether to collect used products by themselves or outsource used product collection to a single independent collection firm at a cost for a single period (Atasu, Toktay, and Van Wassenhove, 2013; Savaskan et al., 2004). Further, earlier researchers have developed mathematical models for firms which have to decide whether the recovery and remanufacturing of used products to be done in-house or outsource to third parties (Martin, Guide Jr., and Craighead, 2010; Xanthopoulos, Vlachos, and Iakovou, 2011; Ovchinnikov, Chao,and Xiang, 2014; Zou, Wang, Deng, and Chen, 2016). Only a few of the former researchers had considered (re)marketing of recovered/remanufactured products in their model formulation and regarded the activity as a non-value adding.
Appears in Departments:Faculty of Management

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