The IBM Research Division has developed the Resource Capacity Planning (RCP) Optimizer to support the Workforce Management Initiative (WMI) of IBM. RCP applies supply chain management techniques to the problem of planning the needs of IBM for skilled labor in order to satisfy service engagements, such as consulting, application development, or customer support. This paper describes two RCP models and presents two approaches to solving each of them. We also describe the motivation for using one approach over another. The models are built using the Watson Implosion Technology toolkit, which consists of a supply chain model, solvers for analysis and optimization, and an Application Programming Interface (API) for developing a solution. The models that we built solve two core resource planning problems, gap/glut analysis and resource action planning. The gap/glut analysis is similar to material requirements planning (MRP), in which shortages (gaps) and excesses (gluts) of resources are determined on the basis of expected demand. The goal of the resource action planning problem is to determine what resource actions to take in order to fill the gaps and reduce the gluts. The gap/glut analysis engine is currently deployed within the IBM service organization to report gaps and gluts in personnel.
IBM has a long history of product end-of-life management and recycling activities, largely centered around IBM's commercial client base. These activities have expanded over time to include product takeback from both commercial customers and individual consumers worldwide. This growth, along with the decreased margins associated with PC products, has made the task of managing these operations in a cost efficient manner more complex. Coordination of these processes across the various markets in which IBM operates requires better supply and demand and costing information for improved decision making. This paper presents an overview of a conceptual study designed to examine the costs and benefits of product end-oflife disposition decisions for used electronics equipment. The study utilizes a reverse logistics supply chain model to examine these decisions. The model was created using the IBM supply chain optimization tool known as WIT (Watson Implosion Technology) developed by IBM's TJ Watson Research Center. The WIT tool automates the decision making process used to determine the optimal mix of equipment that should be refurbished for resale versus dismantled for parts thereby greatly improving the info'rmation available for determining end of life disposition solutions.The WIT optimization tool can be used to determine a theoretical optimal cost scenario through which projected costs and benefits of product takeback can be better estimated. Using these estimates, an organization could use this information to determine what mix of products to target, what (if any) margins exist, and what costs to focus on for potential reductions. This exercise can be theoretically applied to various product takeback models in an effort to improve efficiencies.
No abstract
In recent years, there has been increased focus by regulators, manufacturers, and consumers on the issue of product end of life management for electronics. This paper presents an overview of a conceptual study designed to examine the costs and benefits of several different Product Take Back (PTB) scenarios for used electronics equipment. The study utilized a reverse logistics supply chain model to examine the effects of several different factors in PTB programs. The model was done using the IBM supply chain optimization tool known as WIT (Watson Implosion Technology). Using the WIT tool, we were able to determine a theoretical optimal cost scenario for PTB programs. The study was designed to assist IBM internally in determining theoretical optimal Product Take Back program models and determining potential incentives for increasing participation rates.
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