Modelling product returns in inventory control—exploring the validity of general assumptions
International Journal of Production Economics , Volume 81 - Issue 82 p. 225- 241
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.
|data analysis, inventory control, product returns, reverse flows|
|ERIM Article Series (EAS)|
|International Journal of Production Economics|
|Organisation||Erasmus Research Institute of Management|
de Brito, M.P, & Dekker, R. (2003). Modelling product returns in inventory control—exploring the validity of general assumptions. International Journal of Production Economics, 81(82), 225–241. doi:10.1016/S0925-5273(02)00275-X