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Benefits of vendor-managed inventory for the reverse logistics operations of returnable transport items

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  • Schoepf, Vivien
  • Strauss, Arne K.
  • Fleischmann, Moritz

Abstract

As closed-loop supply chains are gaining importance in many industries as key enablers of reduced waste and ecological footprint, new challenges arise in integrating forward and reverse logistic flows. We focus on a variant of the production routing problem and explore the benefits of vendor-managed inventory (VMI) policies for the reverse logistics operations of returnable transport items. A stochastic two-stage program accounting for the considerable uncertainty of return flows is developed and solved using sample average approximation and relaxation-based bounds. We find that the benefits of VMI are not only linked to lower operational costs but also higher performance stability. Further, in hybrid networks of partially VMI and non-VMI nodes, the strategic selection of nodes for VMI implementation can positively impact network performance.

Suggested Citation

  • Schoepf, Vivien & Strauss, Arne K. & Fleischmann, Moritz, 2026. "Benefits of vendor-managed inventory for the reverse logistics operations of returnable transport items," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 205(C).
    • Handle: RePEc:eee:transe:v:205:y:2026:i:c:s1366554525004806
    DOI: 10.1016/j.tre.2025.104439
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