|Start Page Number:||205|
|End Page Number:||227|
|Publication Date:||Jan 2004|
|Journal:||International Journal of Production Economics|
|Authors:||Li Duan, Yan Houmin, Choi Tsan-Ming|
We study in this paper a supply chain which is integrated by a returns policy. In the past, owing to a lack of sales channels, the returned products would be worth very little. Now, with the advance of e-commerce, the returned products can be sold with a higher price on the e-marketplace. In light of this, we first investigate the optimal returns policy under the existence of the e-marketplace. Through a mean–variance analysis, we further study the risk issue associated with the optimal policy. Extensive simulations are then carried out and the managerial insights are discussed.