ANALYSIS OF THE HYUNDAI ASSURANCE SYSTEM

Open Access
Author:
Bok, Alex
Area of Honors:
Supply Chain and Information Systems
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • David Huff, Thesis Supervisor
  • John C Spychalski, Honors Advisor
Keywords:
  • profitability
  • Closed Loop Supply Chain Management
  • Hyundai
  • Assurance
Abstract:
The Hyundai Assurance Program is a program in which the dealership essentially buys back a car if a person is unable to afford the car within the first year of purchase. Hyundai is a pioneer within this program because it has never been done before. Hyundai has in turn entered a kind of closed loop supply chain in dealing with returns and the reverse logistics of the transaction. The research in the paper will investigate the factors leading to the development of a closed-loop supply chain, describe the closed-loop supply chain design, and focus on the collection of challenges faced. Ultimately, this paper will show that Hyundai’s buyback policy can create value to the customer and to Hyundai by taking advantage of the shortened life cycle and resale. Although the buyback can potentially hurt the line of car brands within Hyundai along with various other issues the assurance system can bring value to Hyundai. Hyundai’s five brands of cars will be analyzed with the Hyundai Assurance program and resale value. Along with the analysis and Hyundai current progress with its Assurance program a recommendation on what Hyundai should do with its Assurance program will be accessed.