The redesign of a warranty distribution network with recovery processes |
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Institution: | 1. Science and Technology on Reliability and Environmental Engineering Laboratory, PR China;2. School of Reliability and Systems Engineering, Beihang University, Beijing 100191, PR China |
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Abstract: | A warranty distribution network provides aftersales warranty services to customers and resembles a closed-loop supply chain network with specific challenges for reverse flows management like recovery, repair, and reflow of refurbished products. We present here a nonlinear and nonconvex mixed integer programming model for the design of the warranty distribution network of a semiconductor company which is operated by an outsourced third party logistics service provider. The application of the model to the real-life case provides an improved distribution network flow and rearranged warehouse and recovery locations, and resulted in weekly cost savings of 3.4% for the considered item. |
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Keywords: | Warranty distribution network Supply chain Nonlinear mixed integer programming |
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