Performance-based Logistic Risk Management in Closed-loop Supply Chains



We developed a decision support system to manage risks of extreme  repair costs in closed-loop supply chains with performance-based contracts. This decision support system provides purchasing limits (both price and quantity) for the proactive procurement of spare  parts, such that extremely expensive repairs can be avoided with  limited investment in spare parts. The proactive strategy provides great advantages for procurement negotiations. Furthermore, our  results have also been used for dismantling aircraft projects.
Contact information:
Prof.dr. M.B.M. de Koster