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Modelling product returns in inventory control--exploring the validity of general assumptions


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  • de Brito, Marisa P.
  • Dekker, Rommert


The literature on stochastic models for inventory control with product returns commonly makes the following simplifying assumptions: demand and returns are each a homogeneous (compound) Poisson process, and the processes are independent of each other. In this paper we explore the validity of these assumptions by analysing real data on return flows. In addition, we discuss practical implications of our findings and we provide insights on information management for inventory systems with return flows.

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Bibliographic Info

Article provided by Elsevier in its journal International Journal of Production Economics.

Volume (Year): 81-82 (2003)
Issue (Month): 1 (January)
Pages: 225-241

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Handle: RePEc:eee:proeco:v:81-82:y:2003:i:1:p:225-241

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Cited by:
  1. Toktay, B. & van der Laan, E.A. & de Brito, M.P., 2003. "Managing Product Returns: The Role of Forecasting," ERIM Report Series Research in Management ERS-2003-023-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  2. de Brito, M.P. & Flapper, S.D.P. & Dekker, R., 2002. "Reverse logistics," Econometric Institute Research Papers EI 2002-21, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  3. Carrasco-Gallego, R. & Ponce-Cueto, E. & Dekker, R., 2009. "A framework for closed-loop supply chains of reusable articles," Econometric Institute Research Papers EI 2009-21, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  4. Kayakutlu, Gulgun & Buyukozkan, Gulcin, 2011. "Assessing performance factors for a 3PL in a value chain," International Journal of Production Economics, Elsevier, vol. 131(2), pages 441-452, June.
  5. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.


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