Manufacturers and their distributors must cope with an increased flow of returned products from their customers. The value of commercial product returns, which we define as products returned for any reason within 90 days of sale, now exceeds US $100 billion annually in the US. Although the reverse supply chain of returned products represents a sizeable flow of potentially recoverable assets, only a relatively small fraction of the value is currently extracted by manufacturers; a large proportion of the product value erodes away due to long processing delays. Thus, there are significant opportunities to build competitive advantage from making the appropriate reverse supply chain design choices. In this paper, we present a simple queuing network model that includes the marginal value of time to identify the drivers of reverse supply chain design. We illustrate our approach with specific examples from two companies in different industries and then examine how industry clockspeed generally affects the choice between an efficient and a responsive returns network.
This paper examines supply chain design strategies for a specific type of perishable product—fresh produce—using melons and sweet corn as examples. Melons and other types of produce reach their peak value at the time of harvest; product value deteriorates exponentially post‐harvest until the product is cooled to dampen the deterioration. Using the product's marginal value of time (MVT), the rate at which the product loses value over time in the supply chain, we show that the appropriate model to minimize lost value in the supply chain is a hybrid of a responsive model from post‐harvest to cooling, followed by an efficient model in the remainder of the chain. We also show that these two segments of the supply chain are only loosely linked, implying that little coordination is required across the chain to achieve value maximization. The models we develop also provide insights into the use of a product's MVT to develop supply chain strategies for other perishable products.
Time is an essential measure of performance in software development because time delays tend to fall directly to the bottom line. To address this issue, this research seeks to distinguish time-based software development practices: those managerial actions that result in faster development speed and higher productivity. This study is based upon a survey of software management practices in Western Europe and builds upon an earlier study we carried out in the United States and Japan. We measure the extent to which managers in the United States, Japan, and Europe differ in their management of software projects and also determine the tools, technology, and practices that separate fast and slow developers in Western Europe. Index Terms-Software engineering, software development, global performance comparisons, software speed and productivity, management factors, empirical research, Europe, Japan, and the United States. + 1.0. Blackburn and G.D. Scudder are with the Owen Graduate Recommended for acceptance by B. Littlewood. For information on obtaining reprints of this article, please send e-mail to: transse@computer.org, and reference IEEECS Log Number S95099. 0098-5589/96$05.00 0 1 996 IEEE Authorized licensed use limited to: The University of Arizona. Downloaded on January 9, 2009 at 12:25 from IEEE Xplore. Restrictions apply.
The condition of the used items acquired by remanufacturers is often highly variable, and sorting is an important aspect of remanufacturing operations. Sorting policies—the rules specifying which used products should be remanufactured and which should be scrapped—have received limited attention in the literature. In this paper, we examine the case of a remanufacturer who acquires unsorted used products as needed from third party brokers. As more used items are acquired for a given demand, the remanufacturer can be more selective when sorting. Thus, two related decisions are made: how many used items to acquire, and how selective to be during the sorting process. We derive optimal acquisition and sorting policies in the presence of used product condition variability for a remanufacturer facing both deterministic and uncertain demand. We show the existence of a single optimal acquisition and sorting policy with a simple structure and show that this policy is independent of production amount when acquisition costs are linear.
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