University Business Case Study: Washing Machine Reverse Logistics

This case study examines the reverse logistics of washing machines, focusing on the movement of goods from their final destination for proper disposal, reuse, and recycling. It highlights the increasing demand for washing machines, driven by consumer preferences for energy-efficient and technologically advanced models. The study explores recent trends like smart features and energy-saving techniques, as well as the impact of legislation and distribution channels. It delves into remanufacturing, repair, and recycling processes, emphasizing the average lifespan of washing machines and the importance of separating and recycling components like plastic and metals. The paper concludes that the washing machine market is profitable due to efficient reuse and recycling, which enables manufacturers to innovate and lower production costs while promoting sustainable practices. The study references various research papers and articles to support its findings.

Running head: BUSINESS
BUSINESS
Name of Student:
Name of University:
Author Note:

1BUSINESS
Introduction
Reverse logistics is the method of moving goods from their typical final destination to
other places such the product is being disposed properly. It is related to operations that is
efficient for reuse of the product and its materials (Alshamsi and Diabat 2015). The demand and
sale of washing machines have increased in the past years which requires a system of reverse
logistics. The aim of the paper is to undergo a case study of washing machines to understand its
reverse logistics.
The case of washing machines
The use of washing machines have increased and consumers have high demand for
energy efficient and fully automatic washing machines. A continuous rise in demand for
commercial washing machines has led the manufacturers to produce machines that has heat
pump powered dryers. This has effectively improved the market for washing machines and led to
rising sale (Gnoni et al. 2017).
Recent tendencies in washing machines
Technological
Manufacturers are introducing wireless technologies such as Wi-Fi and ZigBee that has
the ability to make interoperability between the possible devices. Smart washing machines has
implemented Wi-Fi technology that can explore near field communication via smart phones.
Washing machines have the feature to get paired by various soft wares in the smart phones which
are then used to download additional features. Washing machine manufacturers are using energy
efficient techniques that has reduced the energy consumption effectively. In the past 20 years,
manufacturers have greatly focused on product innovation and its distribution channels.

2BUSINESS
Companies are continuously developing themselves and innovating the features. Modern
washing machines comprise of features like Smart Diagnosis, smart Nudges, Smart Control,
Eco-Check and Auto-Optimal Wash respectively. Consumers purchase energy star certified
washing machines that consume less energy and has a lower price. Samsung has introduced a
system named AddWash front where the user can add laundry in mid-cycle (Agrawal, Singh and
Murtaza 2015). New techniques are involved that consume 80 percent less water and has eco-
bubble generator that dissolves detergents quickly.
Legislation
Washing machines are sold through strong distribution channels to cater the needs of
wide range of customers. Manufacturers invest in supply chain management strategies which
enables producers to gain greater profit level. Manufacturers try to buy inputs from other firms
and assemble them in order to lower production cost and gather huge sales (Bressanelli, Perona
and Saccani 2017). The functioning of washing machines are dependent on the law of
Centrifugation, which separates particle from a solid-liquid mixture.
The washing machine market has grown in the past years that has effectively improved
international trade. The rate of GST has been reduced on washing machines as it has become a
necessary household appliance. However, the import duty has gone up because of rising demand
and huge transaction cost (Rezaei 2015). As a result, materials for washing machines are being
traded and manufactured in places closer the retail outlets. Moreover, parts of washing machine
are recycled and reused for production of newer ones, which makes the business more profitable.
Remanufacturing, repair and recycling logistics

3BUSINESS
Modern washing machines have the average life expectancy of about 11 years and is
recycled to newer ones. To ensure this, a durability test has been performed which showed that
all washing machines cannot be recycled and this reusability feature depends on the performance
of spinning cycle. The scrap metal is being separated from the machine which is then melted and
recycled by manufacturing. Washing machine has components like plastic and metals with
various copper and porcelain coatings (Kilic, Cebeci and Ayhan 2015). It has motors to turn the
drum for spinning cycles which can be cycled by properly changing the functionality of the
machines. People sell their old washing machines at low price such that it can be recycled.
Conclusion
Therefore, it can be concluded that the market for washing machine is very profitable as
the product can be efficiently reused and recycled. This creates profit for the manufacturers who
are able to innovate new technologies into the system and encourage rising sales. Modern
machines also consume less power that is sustainable for climate regulation practices. Washing
machines production is a highly profitable business as manufacturers can build new products by
reusing and recycling the older machines and lower the production cost.

4BUSINESS
Reference List
Agrawal, S., Singh, R.K. and Murtaza, Q., 2015. A literature review and perspectives in reverse
logistics. Resources, Conservation and Recycling, 97, pp.76-92.
Alshamsi, A. and Diabat, A., 2015. A reverse logistics network design. Journal of
Manufacturing Systems, 37, pp.589-598.
Bressanelli, G., Perona, M. and Saccani, N., 2017. Reshaping the washing machine industry
through circular economy and product-service system business models. Procedia CIRP, 64,
pp.43-48.
Gnoni, M.G., Mossa, G., Mummolo, G., Tornese, F. and Verriello, R., 2017. Supporting circular
economy through use-based business models: the washing machines case. Procedia CIRP, 64,
pp.49-54.
Kilic, H.S., Cebeci, U. and Ayhan, M.B., 2015. Reverse logistics system design for the waste of
electrical and electronic equipment (WEEE) in Turkey. Resources, Conservation and
Recycling, 95, pp.120-132.
Rezaei, J., 2015. A systematic review of multi-criteria decision-making applications in reverse
logistics. Transportation Research Procedia, 10, pp.766-776.