Return and recycling of used mobile phones
Research in a closed loop supply chain context with focus
on different customer behavior patterns
Final Project
Papaya Milk
Sandy, Rachel, Jason, Jimmy, Richard, Nick
Operation Management
1/2/2014
1
Outline
• Introduction
• Literature review
• The mobile phone lifecycle
• Environmental issues
• Consumer behavior
• Programs for return and recycling of mobile phones
• Proposed research structure framework
• Research Design
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Introduction
•The first handheld mobile cell phone was
demonstrated by Motorola in 1973
•Mobile phones are the most common in the
world
•Discarded mobile phones represent a
growing problem
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Motivation and Purpose
•Discarded mobile phone impact to
environment
•Return rates are still low
•Improve recycling of end-of-life mobile phone
•
•Customer behavior patterns about mobile
phone recycling
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Literature review
•Existing literature have a focus on the mobile
phone recycling field
• Concerns about mobile phone lifecycle as well as the
impacts and benefits
•Literature slightly discusses different
customer behaviors and how to build
accepted programs for return and recycling
mobile phones for the users
• Especially no evidence in Taiwan
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
The mobile phone lifecycle
•Designed and managed to explicitly consider
the reverse and forward supply chain
activities over the entire life cycle of the
product
•Key points:
• Product returns management
• Remanufacturing/reconditioning operational issues
• Remarketing
(Source: V. Daniel R. Guide, Jr. & Luk N. Van Wassenhove, 2005)
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
The mobile phone lifecycle
• Unwanted mobile phones should at best not put in the trash
or stored away
• Deciding whether the phone can be repaired and resold or
sent for recycling
• Rethinking about how to use the recycling mobile phone
Collection
Tack-Back
Evaluation
New
destinations,
New owners
Refurbishing
(Source:The GSM Association, 2006)
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Environmental issues
• Ensure that broader social and economic impacts
and benefits are considered when evaluating the
contribution to sustainable development
• Helps to protect the environment as well as save
expensive and rare resources
• Precious metals such as gold and silver, can be
recycled
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Environmental issues
•Recycling helps the environment
• Allowing valuable raw materials to be preserved
• Preventing mobile phone waste from damaging the
environment
•Set up the Environmental protection Agency
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Customer behavior
•A case study in Nigeria
•Results:
• Nigerians are willing to do mobile phones recycling
• No similar program
•Suggestion:
• International recycling law or regulations to set global
standard
(Source: I.C. Nnorom, 2009)
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Programs for return and recycling of mobile phones
•A case study of Nokia's recycling strategy
• India in 2009
• Plant a tree sapling for every handset dropped
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Programs for return and recycling of mobile phones
•Case study•IPod and mobile phone recycling program
•How does the program work?
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Programs for return and recycling of mobile phones
•Case study•IPod and mobile phone recycling program
• Recycling strategy is defined as their responsibility
• 90 percent recovery rate
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Proposed research structure framework
• First step
• Theoretical background of the research topic
• Second step
• Identify different customer behavior while using and returning mobile
phones
• Research questions
• (1) What are the main barriers and motivating factors which
determine the recycling behavior of mobile phone users?
• (2) What are possible programs for return and how are these mobile
phone recycling campaigns accepted?
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Proposed research structure framework
•Percentage of mobile phone users in
different ages
61 above
7%
under 20 years
16%
51-60 years
11%
41-50 years
17%
21-30 years
26%
31-40 years
23%
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Papaya Milk
under 20 years
21-30 years
31-40 years
41-50 years
51-60 years
61 above
Age of mobile phone users
in %
Under 20 years
15.8
21 -30 years
25.6
31-40 years
22.5
41-50 years
17.0
51-60 years
11.3
61 above
7.5
total
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Return and recycling of used mobile phones
Operation Management
Proposed research structure framework
•Survey to identify consumer behavior
•Target group
• Student survey (Junior school, High school, College)
• Conducted in schools by the teachers
• Working Population
• Conducted through sells person in department stores
and electronic markets while purchase a new phone
•Locations: Taipei, Taichung, Kaohsiung
•Scope: N=600 per target group
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Papaya Milk
Return and recycling of used mobile phones
Operation Management
Research Design
Results:
(1)
Survey evaluation
(2)
Recommendation for future campaigns to motivate mobile phone users to recycle their devices
(3)
Identification of possible return channels
Survey to identify consumer behavior (questionnaire):
Student Survey
Working Population (N=600)
Questionnaire in schools and conducted by the teachers
(1)
Junior school (N=200)
(2)
High school (N=200)
(3)
College (N=200)
Survey conducted through sells person in department stores
and electronic markets while purchase a new phone
Theoretical background:
(1)
Theoretical framework: The mobile phone lifecycle (closed loop view)
(2)
Opportunities: Economic, ecological and social and impacts and benefits
(3)
Consumer behavior
(4)
Programs for return and recycling of mobile phones
Research questions:
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Papaya Milk
(1)
What are the main barriers and motivating factors which determine the recycling behavior of mobile phone
users?
(2)
What are possible programs for return and how are these mobile phone recycling campaigns accepted?
Return and recycling of used mobile phones
Operation Management
Thank you for your attention!
Q&A
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