Research on Operation Model for Inventory Control of Reverse Logistics

There is now considerable concern for manufacturers about inventory control of reverse logistics, driven by growing environmental concerns, legislative actions, economic profits and the issue of China´s sustainable development strategies. A periodic handling returns model was developed for inventory control of reverse logistics, with which returns and demands were obeyed independent Poisson distribution and the repairable products could be sold on discount. A simple method was presented for determining the optimal order policy and the handling period for returns. Applied examples were shown that return intensity, repairable rate had great influence on the total cost and ordering policy and the discount had little influence on the ordering policy. The numerical examples´ results also showed that the model could not only effectively coordinate retailers´ activities, but also help retailers to set down their own ordering policy.