A decision system for routing returned product to the optimal recovery channel

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Manufacturing Program at MIT, 2010.

Bibliographic Details
Main Author: Lin, Christopher C. (Christopher Cheyih)
Other Authors: David Simchi-Levi and Roy Welsch.
Format: Thesis
Language:eng
Published: Massachusetts Institute of Technology 2010
Subjects:
Online Access:http://hdl.handle.net/1721.1/59185
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author Lin, Christopher C. (Christopher Cheyih)
author2 David Simchi-Levi and Roy Welsch.
author_facet David Simchi-Levi and Roy Welsch.
Lin, Christopher C. (Christopher Cheyih)
author_sort Lin, Christopher C. (Christopher Cheyih)
collection MIT
description Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Manufacturing Program at MIT, 2010.
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spelling mit-1721.1/591852022-01-28T17:22:38Z A decision system for routing returned product to the optimal recovery channel Lin, Christopher C. (Christopher Cheyih) David Simchi-Levi and Roy Welsch. Leaders for Global Operations Program. Leaders for Global Operations Program at MIT Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science Sloan School of Management Sloan School of Management. Electrical Engineering and Computer Science. Leaders for Global Operations Program. Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Manufacturing Program at MIT, 2010. Cataloged from PDF version of thesis. Includes bibliographical references (p. 62-63). Dell, a leading computer manufacturer, must deal with systems returned from its customers. Historically, it has refurbished most of its returned systems for resale on its Dell Outlet website. While this has provided high net recoveries (revenue less incurred costs) compared to its peers, Dell believes there is ample opportunity in cannibalizing some returned systems for the piece parts (i.e. "teardown"). These harvested piece parts can be used to service field systems, repair refurbished systems, or directly sold to customers as spare parts. Dell is concerned about ensuring an optimal disposition of system to teardown vs. direct resale. Written as part of research internship at Dell, this paper proposes, simulates, and evaluates a decision support system to address the question of disposition. The decision engines use historical data and statistics to estimate net recoveries in resale and forecasted demand to estimate net recoveries through teardown. Linear regressions were found to have poor power in predicting overall net recoveries; however, simple heuristics were found to identify likely low recovery systems. Overall, the implementation of the decision support system will drive improved net recoveries, with savings estimated to be greater than $1 million annually. by Christopher C. Lin. S.M. M.B.A. 2010-10-12T18:07:44Z 2010-10-12T18:07:44Z 2010 2010 Thesis http://hdl.handle.net/1721.1/59185 659825144 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 64 p. application/pdf Massachusetts Institute of Technology
spellingShingle Sloan School of Management.
Electrical Engineering and Computer Science.
Leaders for Global Operations Program.
Lin, Christopher C. (Christopher Cheyih)
A decision system for routing returned product to the optimal recovery channel
title A decision system for routing returned product to the optimal recovery channel
title_full A decision system for routing returned product to the optimal recovery channel
title_fullStr A decision system for routing returned product to the optimal recovery channel
title_full_unstemmed A decision system for routing returned product to the optimal recovery channel
title_short A decision system for routing returned product to the optimal recovery channel
title_sort decision system for routing returned product to the optimal recovery channel
topic Sloan School of Management.
Electrical Engineering and Computer Science.
Leaders for Global Operations Program.
url http://hdl.handle.net/1721.1/59185
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