Return handling options and order quantities for single period products. (English) Zbl 1033.90029

Summary: Products which are sold through E-commerce or mail sales catalogues tend to have a much higher return rate than traditional products. The returns are especially problematic for seasonal products. To support decision making in these situations we study various options, which may be considered as strategic decisions, on handling the increased return flow. Closed form analytic expressions for optimal order quantities are obtained by solving the models developed for each option. Decision making guidelines on choosing between return options and some properties of the optimal solutions are presented. We also discuss estimation of the serviceable return rate in practical situations.


90B30 Production models
Full Text: DOI


[1] Chambers, M.; Eglese, R., Use of preview exercises to forecast demand for new lines in mail order, Journal of operational research society, 3, 3, 267-273, (1986)
[2] Chang, S.H.; Fyffe, D.E., Estimation of forecast errors for seasonal style-goods sales, Management science, 18, 2, B89-B96, (1971) · Zbl 0225.90012
[3] Fleischmann, M.; Krikke, H.; Dekker, R.; Flapper, S., A characterization of logistics networks for products recovery, Omega, 28, 653-666, (2000)
[4] Ehrhardt, R.; Taube, L., An inventory model with random replenishment quantities, International journal of production research, 25, 12, 1795-1803, (1987) · Zbl 0629.90029
[5] Emmons, H.; Gilbert, S.M., Management science, 44, 2, 276-283, (1998)
[6] Fisher, M.; Raman, A., Reducing the cost of demand uncertainty through accurate response to early sales, Operations research, 44, 1, 87-99, (1996) · Zbl 0847.90065
[7] Fleischmann, M.; Bloemhof-Ruwaard, J.M.; Dekker, R.; van der Laan, E.A.; van Nunen, J.A.E.E.; Van Wassenhove, L.N., Quantitative models for reverse logistics: A review, European journal of operational research, 103, 1-17, (1997) · Zbl 0920.90057
[8] Gentry, C.R., Reducing the cost of returns, Chain store age, 75, 10, 124-126, (1999)
[9] Guide, V.D.R.; Srivastava, R., Inventory buffers in recoverable manufacturing, Journal of operations management, 16, 5, 551-568, (1998)
[10] Khouja, M., A note on the newsboy problem with an emergency supply option, Journal of operational research society, 47, 1530-1534, (1996) · Zbl 0873.90022
[11] Khouja, M., The single-period (news-vendor) problem: literature review and suggestions for future research, Omega, 27, 537-553, (1999)
[12] Lau, H.-S.; Lau, A.H.-L., A semi-analytical solution for a news boy problem with mid-period replenishment, Journal of operational research society, 48, 1245-1253, (1997) · Zbl 0895.90075
[13] Lau, H.-S.; Lau, A.H.-L., Reordering strategies for a newsboy-type product, European journal of operational research, 103, 557-572, (1997) · Zbl 0921.90064
[14] Meyer, H., Many happy returns, The journal of business strategy, 20, 4, 27-31, (1999)
[15] Murray, G.; Silver, E.A., A Bayesian analysis of the style goods inventory problem, Management science, 12, 11, 785-797, (1966)
[16] Noori, A.H.; Keller, G., One-period order quantity strategy with uncertain match between the amount received and quantity requisitioned, Infor, 24, 1, 1-11, (1986) · Zbl 0592.90026
[17] Silver, E.A.; Pyke, D.F.; Peterson, R.P., Inventory management and production planning and scheduling, (1998), John Wiley
[18] Van der Laan, E.A.; Dekker, R.; Salomon, M., Production planning and inventory control with remanufacturing: A numerical comparison between alternative disposal strategies, International journal of production economics, 46-47, 339-350, (1996)
[19] Webster, S.; Weng, Z.K., A risk-free perishable item returns policy, Manufacturing and service operations management, 2, 1, 100-106, (2000)
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.