The integrated inventory model with shortage and missing orders based on reverse logistics

Because of the strategy of sustainable development and recycling economy, a lot of enterprises actively joined reverse logistics including recycling and remanufacturing. The inventory management including reverse logistics becomes more complex, because of recycling and remanufacturing costs. Meanwhile, because of variety uncertainty factors, firms could not avoid the problem of shortage. The shortage may cause losing some customers, thus we consider the factors of missing orders. Based on these, the paper constructed the integrated inventory model regarding recycling and new products, obtained the optimal solution and described its practical application through a numerical example.