Article ID: | iaor200276 |
Country: | Netherlands |
Volume: | 72 |
Issue: | 1 |
Start Page Number: | 73 |
End Page Number: | 87 |
Publication Date: | Jan 2001 |
Journal: | International Journal of Production Economics |
Authors: | Laan Erwin A. van der, Kiesmuller Gudrun P. |
Keywords: | reverse logistics |
In this paper an inventory model for a single reusable product is investigated, in which the random returns depend explicitly on the demand stream. Further, the model distinguishes itself from most other research in this field by considering leadtimes and a finite planning horizon. We show that neglecting the dependency between demands and returns of products may lead to bad performance with respect to total average relevant costs. Additionally, our results enable us to determine the minimal recovery probability or the minimal length of the planning horizon for which reuse is profitable.