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Optimal cross-channel return policy in dual-channel retailing systems

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  • Radhi, Mohannad
  • Zhang, Guoqing

Abstract

Many dual-channel retailers sell their products through both a physical store and an online store. Allowing unsatisfactory online purchases to be cross-returned to the physical store together with same-channel returns is one of the practical strategies used in the dual-channel retailing industry. Many of those returns are intact and undamaged and, thus, can be resold. But there is a lack of the research on how those resalable returns impact the order quantities of each channel. In this paper we study and compare four different return policies where a dual-channel retailer offers both same- and cross-channel returns. For each return policy, we propose mathematical models to determine optimal order quantities that account for the impact of resalable returns. Several insights on the different cross-channel return policies and some properties of the optimal solutions are presented.

Suggested Citation

  • Radhi, Mohannad & Zhang, Guoqing, 2019. "Optimal cross-channel return policy in dual-channel retailing systems," International Journal of Production Economics, Elsevier, vol. 210(C), pages 184-198.
    • Handle: RePEc:eee:proeco:v:210:y:2019:i:c:p:184-198
    DOI: 10.1016/j.ijpe.2019.01.014
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    References listed on IDEAS

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