A Quantitative approach to assessing the profitability of car and truck tire remanufacturing
Author: Lebreton, B. ; Tuma, AINSEAD Area: Technology and Operations ManagementIn: International Journal of Production Economics, vol. 104, no. 2, December 2006 Language: EnglishDescription: p. 639-652 .Type of document: INSEAD ArticleNote: Please ask us for this itemAbstract: Over 600,000 tons of used tires are annually disposed of in Germany. Given the legal framework and the limited landfill capacities, particular attention has been given to the environmental impacts of tire recycling. Dedicated life cycle assessments point out tire remanufacturing, also called retreading, as the most sustainable recovery alternative. Nevertheless, retreading still remains only one alternative among others with a fraction varying from 1% up to 80% market share depending on the tire type. Thus, the prime purpose of this case study is twofold: to ascertain the reasons for such discrepancy and to investigate to what extent remanufacturing activities could be extended. The former requires an analysis of the present situation in both the car and truck tire markets. For the latter, we apply an OEM-centered decision model in order to analyze potential future scenarios concerning their ability to raise remanufacturing rates. We find out that retreaded truck tires have exhausted their remanufacturing potential whereas a customer-sided bottleneck hinders further development in the car tire market. Finally, we conclude that the question of whether an OEM should add retreaded tires to its current product mix mostly depends on a product's nature, either functional or psycho-sociological. Only functional products have enough remanufacturing potential to justify an extension of supply chain planning toward recovery.| Item type | Current location | Call number | Status | Date due | Barcode | Item holds |
|---|---|---|---|---|---|---|
|
Europe Campus | Available | BC007634 |
Ask Qualtrics
Over 600,000 tons of used tires are annually disposed of in Germany. Given the legal framework and the limited landfill capacities, particular attention has been given to the environmental impacts of tire recycling. Dedicated life cycle assessments point out tire remanufacturing, also called retreading, as the most sustainable recovery alternative. Nevertheless, retreading still remains only one alternative among others with a fraction varying from 1% up to 80% market share depending on the tire type. Thus, the prime purpose of this case study is twofold: to ascertain the reasons for such discrepancy and to investigate to what extent remanufacturing activities could be extended. The former requires an analysis of the present situation in both the car and truck tire markets. For the latter, we apply an OEM-centered decision model in order to analyze potential future scenarios concerning their ability to raise remanufacturing rates. We find out that retreaded truck tires have exhausted their remanufacturing potential whereas a customer-sided bottleneck hinders further development in the car tire market. Finally, we conclude that the question of whether an OEM should add retreaded tires to its current product mix mostly depends on a product's nature, either functional or psycho-sociological. Only functional products have enough remanufacturing potential to justify an extension of supply chain planning toward recovery.
Digitized
There are no comments for this item.