The value of worthless products: The effect of lead time reduction in return flows
2009 (English)In: Proceedings from the 21st Annual NOFOMA Conference: 11-12 June 2009, Jönköping, Sweden, Jönköping: JIBS , 2009, 634-647 p.Conference paper (Refereed)
Purpose of this paper
Products that are no longer usable often have a very limited traditional value. Time reduction in the return flow of such goods is therefore seldom considered necessary. However, even if returned products have no traditional value, in some cases they carry an information value. The purpose of this paper is to estimate the economic value of time reduction in the reverse flow of ‘worthless’ goods with an information value.
The information value of material returned from Scania’s local workshops is estimated. Suggested lead time reductions in the flow are analyzed from a total cost perspective.
The products studied have a substantial information value for Scania. A lead time reduction will have a positive effect on total costs. The main reason is that the sooner defects and quality problems are investigated; the sooner improvements can take place, which reduces future quality costs.
Research limitations/implications (if applicable)
The study leans upon a single case study, which makes it hard to draw general conclusions. This paper can rather be used as a starting point for more thorough research in the field.
Practical implications (if applicable)
Taking information value into account may lead to increased attention on return flows, trying to make them more time efficient.
What is original/value of paper
Little attention has so far been given to the value of information in returned material.
Place, publisher, year, edition, pages
Jönköping: JIBS , 2009. 634-647 p.
Reverse logistics, Information value, Time reduction, Total cost analysis, Lead time, Return flow, Warranty
Production Engineering, Human Work Science and Ergonomics
IdentifiersURN: urn:nbn:se:liu:diva-62616ISBN: 978-91-86345-01-3OAI: oai:DiVA.org:liu-62616DiVA: diva2:373614