Eureka Case 30 min Undergrad

Segunda Vida

You are Iñaki Berraondo-Lasa, 52, Operations Director at Aizkorri Electrodomésticos, a Basque maker of washing machines and ovens. A new EU rule and a changed retail shelf have forced one question onto your desk: when an Aizkorri machine reaches the end of its life, what happens to it — and who profits?

The situation

Aizkorri Electrodomésticos makes about 340,000 appliances a year from a single plant in Gipuzkoa — €180M in revenue, 620 employees, a survivor in a Basque appliance industry that has lost most of its names. For sixty years the model has been linear: buy steel and motors and electronics, build a machine, sell it, and never see it again. After roughly twelve years of use, the machine becomes someone else's waste.

Two things changed. The EU's ecodesign and right-to-repair rules now press producers to take responsibility for what happens after the sale, and extended-producer-responsibility fees are rising every year. And on the retail shelf, Bosch and Miele have begun listing certified refurbished ranges — a second-life product, branded, warrantied, sold next to the new ones. Your CEO wants Aizkorri to have an answer. She has asked Operations to design it.

Your job in this case: study how value moves through a circular system, model the economics of closing the loop, and commit to the circular supply chain Aizkorri will build. The plan goes to the board in two weeks.

The decision

Which circular supply chain does Aizkorri build?

  • A · Recycling-led
  • B · Refurbishment-led
  • C · Design-led remanufacturing

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