Product acquisition management: current industry practice and a proposed framework

Remanufacturing requires that used products (cores) be obtained from the end-user at the end of their current life cycle so that the value-added may be recovered and the products returned to functional use again. The acquisition of cores to be remanufactured in such recoverable manufacturing systems is a complex set of activities that requires careful coordination to avoid the uncontrolled accumulation of core inventory, or unacceptable levels of customer service. The authors report on current industry practice via an extensive survey of North American remanufacturing firms. The authors propose a formal framework for Product Acquisition Management (PrAM) to coordinate, monitor, and provide an interface between reverse logistics and production planning and control activities. Finally, a series of managerial guidelines for the organization of PrAM activities is proposed. We conclude that managers should take actions that consistently reduce the variance inherent in a remanufacturing environment.