Reverse logistics has the biggest amount of challenges to overcome as it was mentioned in table 2.7. This section with describe some options to overcome them.
1.1.1 Involvement of Many Players in the Recollection Activities and the Willingness to Return the Product
The best way to define a relation among players is any business is through contracts. The contracts establish clear rules and guarantees that all the involved players know and play with the same rules. The most common contracts used in remanufacturing are:
• Direct order: The customer and the supplier are the same player in this type of contract and is responsible for giving the order to remanufacture a product. The supplier/customer deliver the core and at the end receives the …show more content…
• Credit based: the customer is again the supplier. When he returns a core, credit is given by the produced that can be used to acquire another remanufactured product.
• Buy-back: In this type of contract, the remanufacturer buys the cores from any source. It is usually used when there is no relation with the customer.
The recollection does not necessarily involve a third party, so an option is that the OEM takes control of the whole operation itself. Instead on investing in giving incentives to the retailer to collect and return the product, or hiring a third party, the investment could be done in establishing an own recollection logistics. Another option is not to lend the property of the product to the customer. This can be done through leasing contracts, which have the advantage at after a period of time the consumer or user, in this case, must return the product.
1.1.2 The Location of the Cars in Unknown and the Cores Return in Low …show more content…
Additionally, if a Leasing contract is used, it can be also expected that many vehicles are in the same collection, so it is easier to return them to the remanufacturing facilities. In any case, when we consider vehicles as the product to be remanufactured, low volumes that can be a unit are a fact.
1.1.3 High Inventories Are Required to Cover Supply Deficits
Inventories will be always required for remanufacturing because it is known that 100% return rate of cores is impossible given the different use each product receive in the market. Understanding this fact, then it is possible to force the user to return the product using contracts.
1.1.4 The Returned Car Could have Modifications or Excessive Damage
To avoid the alteration of the original characteristics of a product, the use of the contracts described in section 3.4.1 gives the first control of what the customer can do. A complement to this action is also to use returning standard describing the conditions that a product must meet to be returned, or how much money will be given back (if applies) according to the condition of the core. These methods discourage any modification or damage that the customer could