Abstract
Waste electrical and electronic equipment (WEEE) is one of the fastest growing
waste streams. Therefore, the reduction of discarded electronic equipment
is of immense importance in order to reduce virgin material consumption
and hence the environmental impact associated with the production
and consumption of consumer electronics. Using the market for new and
refurbished laptops as a reference industry, a typical life-cycle of a laptop
including refurbishment and resale of the returned product is modeled and
analyzed in order to explore the related profitability. Therefore, we first
investigate actual market prices of new and refurbished laptops using data
gathered from bestbuy.com. Subsequently, we introduce a newsvendor model
where we use the insights into pricing of these products obtained from the empirical study. The model integrates different reverse channels like recycling
or disposal which have a crucial impact on the original equipment manufacturer's
optimal decision making. Our studies highlight how the return rate
and fractions of returned cores that are refurbished by the OEM as well as
new and refurbished product prices are interrelated and in
uence the OEMs
production decision problem. (authors' abstract)
waste streams. Therefore, the reduction of discarded electronic equipment
is of immense importance in order to reduce virgin material consumption
and hence the environmental impact associated with the production
and consumption of consumer electronics. Using the market for new and
refurbished laptops as a reference industry, a typical life-cycle of a laptop
including refurbishment and resale of the returned product is modeled and
analyzed in order to explore the related profitability. Therefore, we first
investigate actual market prices of new and refurbished laptops using data
gathered from bestbuy.com. Subsequently, we introduce a newsvendor model
where we use the insights into pricing of these products obtained from the empirical study. The model integrates different reverse channels like recycling
or disposal which have a crucial impact on the original equipment manufacturer's
optimal decision making. Our studies highlight how the return rate
and fractions of returned cores that are refurbished by the OEM as well as
new and refurbished product prices are interrelated and in
uence the OEMs
production decision problem. (authors' abstract)
| Originalsprache | Englisch |
|---|---|
| Erscheinungsort | Vienna |
| Herausgeber | WU Vienna University of Economics and Business |
| Publikationsstatus | Veröffentlicht - 20 Mai 2016 |