Modeling and Analysis of Reverse Logistics

TLDR

Modeling techniques have long optimized forward logistics, but reverse logistics—now encompassing many activities beyond simple returns—has only recently begun to be differentiated and offers substantial opportunities for modeling to improve supply chain management. This article aims to demonstrate how modeling techniques can enhance reverse logistics processes and provide substantial benefits to supply chain professionals. The authors focus on specific reverse logistics processes for product‑selling firms, applying modeling techniques to improve those processes and outline opportunities for supply chain professionals.

Abstract

Many modeling techniques have been developed to maximize the effectiveness and efficiency of forward logistics and supply chain management. As this article will illustrate, modeling techniques can be helpful in improving the management of reverse logistics as well. Companies and researchers are just beginning to appreciate the important differences between forward and reverse chains, and there is great opportunity to apply modeling methodologies to managing reverse logistics problems and issues. This article describes how modeling techniques can be utilized to improve reverse logistics processes and aid in solving real‐world reverse logistics problems. We focus on specific reverse logistics processes that firms, which sell products, are likely to address. In fact, the area of reverse logistics has broadened of late to include many activities that were not originally part of simply returning consumer products to a retailer. Herein, we present an overview of opportunities, where improved modeling efforts should be able to provide substantial benefits to supply chain professionals.