Review and Improvement of Reverse Logistics in an Electronics Company

InFocus is a worldwide leader in the digital display market. Despite its success in sales, the company posted a net loss in profit in year 2005. The major reasons are its high operating cost and high inventory level. After reviewing its reverse logistics system, we found that current policy to process the returned product does not reap the maximum amount of profit from returns. We proposed to add a new channel to process the product returns. An optimum inventory policy was also developed to maximize the profit. An alternative distribution channel of the service parts was suggested which can cut down the inventory level and reduce the operating cost. Thesis Supervisor: Stanley B. Gershwin Title: Senior Research Scientist, Department of Mechanical Engineering