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
Econometric Institute Research Papers
Erasmus School of Economics

de Brito, M.P, & Dekker, R. (2001). Modelling product returns in inventory control - exploring the validity or general assumptions (No. EI 2001-27). Econometric Institute Research Papers. Retrieved from