Should a manufacturer sell refurbished returns on the secondary market to incentivize retailers to reduce consumer returns?

Consumer electronics returns are typically returned by the retailer to the manufacturer for a full refund of the wholesale price. This practice does not sufficiently motivate the retailer to reduce the volume of returns. Different mechanisms have been proposed to incentivize the retailer to reduce returns, such as a reduced wholesale price for returns below a target, but they do not consider the subsequent disposition of returns. The high value of returns usually justifies refurbishment and resale. We study how competition between refurbished returns sold by the manufacturer and new products sold at the retailer affects retailer behavior. We find that the retailer never exerts more effort to reduce returns when faced with competition through the online store. The manufacturer’s profitability, however, is always higher with an online store. The online store is also preferable to a strategy where the manufacturer only partially refunds the retailer for returns

Supply Chain Coordination for False Failure Returns (ed.2)

False failure returns are products that are returned by consumers to retailers with no functional cosmetic defect. The cost of a false failure return includes the processing actions of testing, refurbishing if necessary, repackaging, the loss in value during the time the product spends in reverse supply chain (a time that can exceed several months for many firms), and the loss in revenue because the product is sold at a discounted price. This cost is significant, and is incurred primarily by the manufacturer. Reducing false failure returns, however, requires effort primarily by the retailer, for example informing consumers about the exact product that best fits their needs. We address the problem of reducing false failure returns via supply chain coordination methods. Specifically, we propose a target rebate contract that pays the retailer a specific dollar amount per each unit of false failure returns below a target. This target rebate provides an incentive to the retailer to increase her effort, thus decreasing the number of false failures and (potentially) increasing net sales. We show that this contract is Pareto–improving in the majority of cases. Our results also indicate that the profit improvement to both parties, and the supply chain, is substantial

Time Value of Commercial Product Returns

Once lightly regarded, the flow of product returns has become a significant concern for many manufacturers. For products, such as PCs, whose value deteriorates rapidly with time, the increasing rates of return from on-line sales have elevated the need for effective reverse supply chain designs. Products lose value in the return stream in two important ways: first, their value diminishes during time delays while awaiting evaluation, repair or refurbishing; second, losses can be incurred through erroneous disposition decisions due to incorrect assessments of the product’s value over time. Using field data for several consumer electronics products, we build analytical models to capture the economic value of a time-sensitive product over its life cycle and then use these models to develop supply chain designs that maximize value recovered from the return steam. We show that the returned product’s "time value" is a critical design parameter

Evaluation of climate simulations produced with the Brazilian Global Atmospheric Model version 1.2

This paper presents an evaluation of climate simulations produced by the Brazilian Global Atmospheric Model version 1.2 (BAM-1.2) of the Center for Weather Forecast and Climate Studies (CPTEC). The model was run over the 1975-2017 period at two spatial resolutions, corresponding to ~180 and ~100 km, both with 42 vertical levels, following most of the Atmospheric Model Intercomparison Project (AMIP) protocol. In this protocol, observed sea surface temperatures (SSTs) are used as boundary conditions for the atmospheric model. Four ensemble members were run for each of the two resolutions. A series of diagnostics was computed for assessing the model's ability to represent the top of the atmosphere (TOA) radiation, atmospheric temperature, circulation and precipitation climatological features. The representation of precipitation interannual variability, El Niño-Southern Oscillation (ENSO) precipitation teleconnections, the Madden and Julian Oscillation (MJO) and daily precipitation characteristics was also assessed. The model at both resolutions reproduced many observed temperature, atmospheric circulation and precipitation climatological features, despite several identified biases. The model atmosphere was found to be more transparent than the observations, leading to misrepresentation of cloud-radiation interactions. The net cloud radiative forcing, which produces a cooling effect on the global mean climate at the TOA, was well represented by the model. This was found to be due to the compensation between both weaker longwave cloud radiative forcing (LWCRF) and shortwave cloud radiative forcing (SWCRF) in the model compared to the observations. The model capability to represent inter-annual precipitation variability at both resolutions was found to be linked to the adequate representation of ENSO teleconnections. However, the model produced weaker than observed convective activity associated with the MJO. Light daily precipitation over the southeast of South America and other climatologically similar regions was diagnosed to be overestimated, and heavy daily precipitation underestimated by the model. Increasing spatial resolution helped to slightly reduce some of the diagnosed biases. The performed evaluation identified model aspects that need to be improved. These include the representation of polar continental surface and sea ice albedo, stratospheric ozone, low marine clouds, and daily precipitation features, which were found to be larger and last longer than the observed features

A perspective for advancing climate prediction services in Brazil

The Climate Science for Service Partnership Brazil (CSSP-Brazil) project provides Brazil and UK partners the opportunity to address important challenges faced by the climate modeling community, including the need to develop subseasonal and seasonal prediction and climate projection services. This paper provides an overview of the climate modeling and prediction research conducted through CSSP-Brazil within the context of a framework to advance climate prediction services in Brazil that includes a research-to-services (R2S) and a services-to-research (S2R) feedback pathway. The paper also highlights plans to advance scientific understanding and capability to produce beneficial climate knowledge and new products to improve climate prediction services to support decisions in various industries in Brazil. Policy-relevant outcomes from climate modeling and prediction exercises illustrated in this paper include supporting stakeholders with climate information provided from weeks to months ahead for (a) improving water management strategies for human consumption, navigation, and agricultural and electricity production; (b) defining crop variety and calendars for food production; and (c) diversifying energy production with alternatives to hydropower

Micronutrient availability in amazonian dark earths and adjacent soils

Amazonian Dark Earths (ADEs) are highly fertile soils in areas with predominance of unfertile soils. However, the variation in nutrient availability between regions and the resilience of ADEs to modern agricultural use is still little known, particularly regarding micronutrient contents. Hence, the present study synthesized current information of ADE impacts on extractable micronutrient (Cu, Ni, Fe, Mn, Zn, B) contents at different soil depths and assessed in detail the role of both soil depth and land-use type on extractable Cu, Ni, Fe, Mn and Zn in nine ADEs and adjacent (ADJ) soils from different Amazonian regions. The land-use systems chosen were secondary old (OF) or young (YF) forests, and agricultural systems (AS) in Iranduba, Belterra and Porto Velho. Only eight studies compared extractable (Mehlich-1) micronutrient contents at 21 sites with ADEs and ADJ soils, but only four studies included depths greater than 30 cm, and B and Ni were evaluated in only one study. Higher Mn and Zn, but lower Fe contents were found in ADEs both from literature data and in the present study, especially in the first 30 cm depth. Increases in extractable Ni and Cu in ADEs varied according to the site and the land use considered. Micronutrient contents tended to decrease with depth, but varied depending on the element, site, soil type and land use. Sites with modern agriculture showed few differences in extractable micronutrient contents, except for a decrease in Fe in Belterra and Mn in Porto Velho. Considering the high amounts of some micro- and macronutrients in ADEs further work is warranted concerning soil management and nutrient balance in plants grown on these soils