| Article ID: | iaor200357 |
| Country: | Netherlands |
| Volume: | 79 |
| Issue: | 1 |
| Start Page Number: | 67 |
| End Page Number: | 73 |
| Publication Date: | Jan 2002 |
| Journal: | International Journal of Production Economics |
| Authors: | Laan Erwin van der, Teunter Ruud |
| Keywords: | remanufacturing, reverse logistics |
When analyzing average cost inventory models, it is common use to add the discount rate times the capital tied up in a product, to the out-of-pocket holding cost rate. This way, capital costs are (roughly) included. In this paper we show that such a method may not always be appropriate for reverse logistics inventory models with both remanufacturing and disposal of returned products.