An empirical study of impacts of production mix, product route efficiencies on operations performance and profitability: a reverse logistics approach

Abstract

Abstract This research studies the impact of two reverse logistics business strategies on profitability of the firm through operations management (OM). The study is employed on scrap steel industry. The first strategy is production mix efficiency (PME), which is involved in the process of producing goods. The second strategy is product route efficiency (PRE), which engages in the transportation of goods. Our finding indicates that OM alone does not have a positive impact on profitability. However, the two strategies have a positive effect on profitability, which provides a potential answer to firms trying to improve profitability. Keywords: reverse logisticsproduction mix efficiencyproduct route efficiencyoperations managementsupply chain management