Optimal strategies of inventory control based on two recovery modes

The batch method for returns recovery is applied in order to have an effective way for reverse logistics management. On condition that the product return is permitted, Poisson distribution is obeyed and the recovered products can be sold as new, the optimal inventory control model for the seller is studied with two different recovery modes. Results indicate that different disposals result in different order decisions, though there is little difference in order costs. Sellers may adopt proper policies according to practical situations.