IDEAS home Printed from https://ideas.repec.org/p/ems/eureir/1692.html
   My bibliography  Save this paper

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

Author

Listed:
  • de Brito, M.P.
  • Dekker, R.

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.

Suggested Citation

  • de Brito, M.P. & Dekker, R., 2001. "Modelling product returns in inventory control - exploring the validity or general assumptions," Econometric Institute Research Papers EI 2001-27, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  • Handle: RePEc:ems:eureir:1692
    as

    Download full text from publisher

    File URL: https://repub.eur.nl/pub/1692/feweco20011031110215.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    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.
    2. 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.
    3. Fleischmann, Moritz & Kuik, Roelof & Dekker, Rommert, 2002. "Controlling inventories with stochastic item returns: A basic model," European Journal of Operational Research, Elsevier, vol. 138(1), pages 63-75, April.
    4. L. Beril Toktay & Lawrence M. Wein & Stefanos A. Zenios, 2000. "Inventory Management of Remanufacturable Products," Management Science, INFORMS, vol. 46(11), pages 1412-1426, November.
    5. 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.
    6. 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.
    7. Erwin van der Laan & Marc Salomon & Rommert Dekker & Luk Van Wassenhove, 1999. "Inventory Control in Hybrid Systems with Remanufacturing," Management Science, INFORMS, vol. 45(5), pages 733-747, May.
    8. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grzegorz Chodak, 2020. "The problem of shelf-warmers in electronic commerce: a proposed solution," Information Systems and e-Business Management, Springer, vol. 18(2), pages 259-280, June.
    2. 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.
    3. Zolfagharinia, Hossein & Hafezi, Maryam & Farahani, Reza Zanjirani & Fahimnia, Behnam, 2014. "A hybrid two-stock inventory control model for a reverse supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 141-161.
    4. Grzegorz, Chodak, 2016. "The Nuisance of Slow Moving Products in Electronic Commerce," MPRA Paper 69817, University Library of Munich, Germany.
    5. 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.
    6. 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.
    7. Tsiliyannis, Christos Aristeides, 2018. "Markov chain modeling and forecasting of product returns in remanufacturing based on stock mean-age," European Journal of Operational Research, Elsevier, vol. 271(2), pages 474-489.
    8. 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 University Rotterdam.
    9. Zerhouni, Hichem & Gayon, Jean-Philippe & Frein, Yannick, 2013. "Influence of dependency between demands and returns in a reverse logistics system," International Journal of Production Economics, Elsevier, vol. 143(1), pages 62-71.
    10. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gregory A. DeCroix, 2006. "Optimal Policy for a Multiechelon Inventory System with Remanufacturing," Operations Research, INFORMS, vol. 54(3), pages 532-543, June.
    2. Corbacioglu, Umut & van der Laan, Erwin A., 2007. "Setting the holding cost rates in a two-product system with remanufacturing," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 185-194, September.
    3. Gregory A. DeCroix & Paul H. Zipkin, 2005. "Inventory Management for an Assembly System with Product or Component Returns," Management Science, INFORMS, vol. 51(8), pages 1250-1265, August.
    4. Ahiska, S. Sebnem & King, Russell E., 2010. "Life cycle inventory policy characterizations for a single-product recoverable system," International Journal of Production Economics, Elsevier, vol. 124(1), pages 51-61, March.
    5. de Brito, Marisa P. & van der Laan, Erwin A., 2009. "Inventory control with product returns: The impact of imperfect information," European Journal of Operational Research, Elsevier, vol. 194(1), pages 85-101, April.
    6. Z P Bayındır & N Erkip & R Güllü, 2005. "Assessing the benefits of remanufacturing option under one-way substitution," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(3), pages 286-296, March.
    7. Flapper, Simme Douwe & Gayon, Jean-Philippe & Lim, Lâm Laurent, 2014. "On the optimal control of manufacturing and remanufacturing activities with a single shared server," European Journal of Operational Research, Elsevier, vol. 234(1), pages 86-98.
    8. Tsiliyannis, Christos Aristeides, 2018. "Markov chain modeling and forecasting of product returns in remanufacturing based on stock mean-age," European Journal of Operational Research, Elsevier, vol. 271(2), pages 474-489.
    9. Kim, Eungab & Saghafian, Soroush & Van Oyen, Mark P., 2013. "Joint control of production, remanufacturing, and disposal activities in a hybrid manufacturing–remanufacturing system," European Journal of Operational Research, Elsevier, vol. 231(2), pages 337-348.
    10. Gregory A. DeCroix & Jing-Sheng Song & Paul H. Zipkin, 2009. "Managing an Assemble-to-Order System with Returns," Manufacturing & Service Operations Management, INFORMS, vol. 11(1), pages 144-159, October.
    11. Roland Geyer & Luk N. Van Wassenhove & Atalay Atasu, 2007. "The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles," Management Science, INFORMS, vol. 53(1), pages 88-100, January.
    12. Feng, Yan & Viswanathan, S., 2014. "Heuristics with guaranteed performance bounds for a manufacturing system with product recovery," European Journal of Operational Research, Elsevier, vol. 232(2), pages 322-329.
    13. Gernot Lechner & Marc Reimann, 2013. "The effect of active used product acquisition on manufacturing and remanufacturing strategies," Working Paper Series, Social and Economic Sciences 2013-01, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    14. Poles, Roberto, 2013. "System Dynamics modelling of a production and inventory system for remanufacturing to evaluate system improvement strategies," International Journal of Production Economics, Elsevier, vol. 144(1), pages 189-199.
    15. Xiting Gong & Xiuli Chao, 2013. "Technical Note---Optimal Control Policy for Capacitated Inventory Systems with Remanufacturing," Operations Research, INFORMS, vol. 61(3), pages 603-611, June.
    16. Ruud H. Teunter, 2001. "Economic ordering quantities for recoverable item inventory systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(6), pages 484-495, September.
    17. Vercraene, Samuel & Gayon, Jean-Philippe, 2013. "Optimal control of a production-inventory system with productreturns," International Journal of Production Economics, Elsevier, vol. 142(2), pages 302-310.
    18. V. Daniel R. Guide, Jr. & Ruud H. Teunter & Luk N. Van Wassenhove, 2003. "Matching Demand and Supply to Maximize Profits from Remanufacturing," Manufacturing & Service Operations Management, INFORMS, vol. 5(4), pages 303-316, October.
    19. Zhou, Li & Xie, Jiaping & Gu, Xiaoyu & Lin, Yong & Ieromonachou, Petros & Zhang, Xiaole, 2016. "Forecasting return of used products for remanufacturing using Graphical Evaluation and Review Technique (GERT)," International Journal of Production Economics, Elsevier, vol. 181(PB), pages 315-324.
    20. van der Laan, Erwin A. & Teunter, Ruud H., 2006. "Simple heuristics for push and pull remanufacturing policies," European Journal of Operational Research, Elsevier, vol. 175(2), pages 1084-1102, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ems:eureir:1692. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RePub). General contact details of provider: http://edirc.repec.org/data/feeurnl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.