Reliable product-service supply chains for repairable products

A mathematical model is developed for integrated flow planning in forward and after-sales supply chains of a company supplying repairable product-warranty packages to markets. Ignoring their interactions, these two supply chains are usually planned separately in literature. We consider demand- and supply-side variations in pre- and after-sales demands and qualified outflow of the SCs' facilities. We show that to neutralize the impact of variations, orders should be amplified by moving from the downstream to the upstream of chains. Results of an example from the gear industry show what interdependencies exist between the company's retail price, service levels, and warranty strategies.