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

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Author Info
M.P. de Brito ()
R. Dekker () (FEW-Econometrie en besliskunde)

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Abstract

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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Paper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number 232.

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Date of creation: 2001
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Handle: RePEc:dgr:eureir:2001232

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Keywords: Inventory control Product returns Reverse flow Data analysis;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Inderfurth, Karl & van der Laan, Erwin, 2001. "Leadtime effects and policy improvement for stochastic inventory control with remanufacturing," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 381-390, May. [Downloadable!] (restricted)
  2. Moritz Fleischmann & Roelof Kuik & Rommert Dekker, 1998. "Controlling Inventories with Stochastic Item Returns: A Basic Model," Tinbergen Institute Discussion Papers 98-100/4, Tinbergen Institute.
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  3. Fleischmann, Moritz & Bloemhof-Ruwaard, Jacqueline M. & Dekker, Rommert & van der Laan, Erwin & van Nunen, Jo A. E. E. & Van Wassenhove, Luk N., 1997. "Quantitative models for reverse logistics: A review," European Journal of Operational Research, Elsevier, vol. 103(1), pages 1-17, November. [Downloadable!] (restricted)
  4. M.P. de Brito & S.D.P. Flapper & R. Dekker, 2002. "Reverse logistics," Econometric Institute Report 272, Erasmus University Rotterdam, Econometric Institute. [Downloadable!]
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  5. Kiesmuller, Gudrun P. & van der Laan, Erwin A., 2001. "An inventory model with dependent product demands and returns," International Journal of Production Economics, Elsevier, vol. 72(1), pages 73-87, June. [Downloadable!] (restricted)
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  6. Guide, V. Daniel R. & Srivastava, Rajesh, 1997. "Repairable inventory theory: Models and applications," European Journal of Operational Research, Elsevier, vol. 102(1), pages 1-20, October. [Downloadable!] (restricted)
  7. Cho, Danny I. & Parlar, Mahmut, 1991. "A survey of maintenance models for multi-unit systems," European Journal of Operational Research, Elsevier, vol. 51(1), pages 1-23, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. B. Toktay & E.A. Van der Laan & M.P. De Brito, 2003. "Managing product returns," Econometric Institute Report 316, Erasmus University Rotterdam, Econometric Institute. [Downloadable!]
  2. Toktay, B. & Laan, E.A. van der & Brito, M.P. de, 2003. "Managing Product Returns: The Role of Forecasting," Research Paper ERS-2003-023-LIS Revision, 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. [Downloadable!]
  3. M.P. de Brito & S.D.P. Flapper & R. Dekker, 2002. "Reverse logistics," Econometric Institute Report 272, Erasmus University Rotterdam, Econometric Institute. [Downloadable!]
    Other versions:
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