Redesigning closed-loop service network at a computer manufacturer: A case study

To provide good after-sales service, an efficient and reliable repair network is necessary. This paper describes a case study at a company providing repair services on behalf of a computer manufacturer in the Asia-Pacific region. Faulty parts' repair can be carried out by the part manufacturers or third-party repair vendors, who are located in different countries. Thus, in designing the closed-loop repair network, their locations must also be taken into account. Economical changes in countries may cause the part manufacturers and third-party repair vendors to shift their business to other countries. This study examines the company's redesign of its repair network. The results show that as most part manufacturers and third-party repair vendors are located in China and Taiwan and supply of faulty parts are relatively high in the East Asian countries, operating new distribution centres in China and Taiwan for consolidation of parts before they are sent out for repair would lead to lower total logistics costs.