Optimal Collection Period for Returned Products in the Reverse Supply Chain

This paper deals with return flows of products from the consumers to the manufacturer in the closed loop supply chain. A mathematical model is developed to determine the optimal collection period at an initial collection point before transshipping the returned products to a centralized return center. Inventory cost at an initial collection point is traded off with transportation cost to the centralized return center in the presence of freight quantity discounts. To reflect a realistic product return process, we analyzed the case of discrete collection time period.