Case Study Overview

You have been tasked by the CEO of a cutting$-$edge robotics company to design a comprehensive reverse logistics system for a new family of personal assistance robots aimed at the elderly population. These robots are designed to enhance the quality of life for older individuals, enabling them to live independently at home or in assisted living facilities. The company plans to sell and lease these robots, with the following specifications:

Target Market: Individuals aged $70$ and above, with an expected adoption rate of $1$ in every $100$ individuals.

Product Range:

Basic Model: $$10,000$

Advanced Model: $$30,000$

Expected Product Life: $12$ years

Distribution$/$Sales Channels: Online sales with delivery via UPS; retail stores in regions with a high percentage of affluent elderly populations.

Robotic Features: The robots are equipped with a communication system that reports their condition and maintenance needs to the company, enabling proactive customer support and lifecycle management.

Assignment Objectives

Your assignment is to design a reverse logistics system that efficiently manages three key scenarios:

Repair and Maintenance: Handling warranty repairs and paid services for malfunctioning robots.

Leasing Return: Managing robots that are returned at the end of their lease period, ensuring they are retrofitted for future use.

End$-$of$-$Life Management: Dismantling robots for parts and recycling materials when they reach the end of their operational life.

While the company plans a global presence, your proposal should only consider the US$.$

Deliverables

Your submission should include the following components:

Description of Main Steps in the Reverse Logistics Process:

Outline the key stages involved in the reverse logistics system from the point of return to final disposition.

Include at least two flowchart$/$figure that graphically describes the proposed macro level steps. Flowchart$/$figures must be developed by the student specific to her$/$his proposed reverse logistic network of personal assistance robots.

Proposal for the Reverse Logistics Network:

Facilities: Designate locations for repair centers, refurbishment facilities, and recycling plants. Explain the rationale behind the chosen locations based on demographics and other factors.

Material Handling: Discuss the processes for receiving, inspecting, and processing returned robots. Include considerations for safety and efficiency. Include at least one self$-$developed flowchart of these processes.

Transportation: Propose transportation methods for returning robots to facilities. Consider using UPS for initial returns and a dedicated fleet for regional collections.

Role of IT:

Explain how the communication system with the robots can aid in forecasting maintenance needs and predicting end$-$of$-$life scenarios.

Discuss the role of data analytics in improving the efficiency of the reverse logistics process.

Challenges and Solutions:

Identify potential challenges in implementing the reverse logistics system, such as customer compliance, logistics costs, and inventory management.

Propose solutions to mitigate these challenges, including incentives for customers to return products and partnerships with local service providers.

Conclusions:

Summarize the key elements of your RL system design.