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Reverse Logistics Summary

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“Integrating reverse logistics into the strategic planning of a supply chain” Kanchan Das The author suggests, “Reverse logistics have gained the attention of environmentalists as an effective way to address sustainability issues. Industries are also taking note with the intention of improving the cost base through product recovery. Endof-life (EOL) product recovery eliminates waste and makes companies more resource efficient, while establishing an environmentally responsible consumer image.” The reasons for growth of the interest are surely economic, social and legal. Some companies like electronic companies definitely find the economic sense to pursue reverse logistics as they can reuse some of the components. Companies like cola manufacturer …show more content…

It also includes the uncertainties related to the End of Life products returned by the consumer. The model also includes the factors in recovering process and enable consistent performance of the supply chain. It first includes the product demand history to understand the optimum product demand of the recovered product. The results of the stage are integrated in the next stage where the entire supply chain planning process based on the demand. The product recovery model include the strategic decision process for collecting returnable products and ensuring the recovered products are transformed into recovered saleable products. Maximizing the objective function for maximum profits for the supply chain, which is calculated by subtracting the retailer’s incentives and expenses for manufacturing and from the total turnover earned when the final recovered products are supplied to the retailer. The incentives of the retailer are based on the contractual agreement to collect returnable products, storing them in their stores and coordinating with the recovery service providers or 3PL partners to recover the final products to the manufacturer. Costs also include the total fixed and variable costs manufacturing the saleable recovered products, costs incurred in developing the distribution

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