ReCellular Inc: Managing Demand Uncertainty in Closed-Loop Remanufacturing

<jats:p> The modeling-based case study is useful for two purposes: introduce closed-loop supply chains and highlight and model some of its unique aspects that the traditional newsvendor formulation does not capture. The case focuses on a third-party remanufacturer (3PR) who buys used cellphones in different quality grades in anticipation of demand. Phones in high grade have been used gently—they have a high acquisition cost but low remanufacturing cost. Low-grade phones have been used extensively—they are cheaper to acquire but have a higher remanufacturing cost. Medium-grade phones have intermediate acquisition and remanufacturing costs. The 3PR needs to trade off these two costs and determine which grade(s) of used phones to buy. The 3PR restores all phones to the same like-new standard during remanufacturing. Extensive use of the case in supply chain management courses shows that in the absence of a mathematical model, students systematically deviate from the optimal decisions because of contextual features. Overall, students believed the case was challenging and that it provides a valuable learning experience, both as an exposure to the closed-loop supply chain domain as well as developing models with industry-specific factors. /jats:p



Work Title ReCellular Inc: Managing Demand Uncertainty in Closed-Loop Remanufacturing
Open Access
  1. Akshay Mutha
  2. Saurabh Bansal
  3. V. Daniel R. Guide
License CC BY-NC-ND 4.0 (Attribution-NonCommercial-NoDerivatives)
Work Type Article
  1. Institute for Operations Research and the Management Sciences (INFORMS)
Publication Date August 18, 2021
Publisher Identifier (DOI)
  1. 10.1287/ited.2021.0254ca
  1. INFORMS Transactions on Education
Deposited February 23, 2022




This resource is currently not in any collection.

Work History

Version 1

  • Created
  • Added Case+Article-ReCellular_FINAL-1.pdf
  • Added Creator Akshay Mutha
  • Added Creator Saurabh Bansal
  • Added Creator V. Daniel R. Guide
  • Published
  • Updated
  • Updated
  • Updated