Controlling inventories with stochastic item returns: A basic model

Fleischmann, Moritz; Kuik, Roelof; Dekker, Rommert

doi:10.1016/s0377-2217(01)00100-x

Cited by 164 publications

(71 citation statements)

References 18 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Inventory Management has received ample attention (see e.g. Van der Laan et al, 1999;Inderfurth et al, 2001;Fleischmann et al, 2002). For a recent review see Van der Laan et al (2004).…”

Section: Related Literaturementioning

confidence: 99%

Inventory control with product returns: The impact of imperfect information

Brito

Laan

2009

European Journal of Operational Research

View full text Add to dashboard Cite

Product returns are characterized by considerable uncertainty on time and quantity. In the literature on inventory management for product return environments best forecasts of future returns are associated with methods that use the most information regarding product return history. In practice, however, data is often scarce and unreliable, while forecasts based on historical data, reliable or not, are never perfect. In this paper we therefore investigate the impact of imperfect information with respect to the return process on inventory management performance. We show that in the case of imperfect information the most informed method does not necessarily lead to best performance. The results have relevant implications regarding investments in product return information systems.

show abstract

“…Inventory Management has received ample attention (see e.g. Van der Laan et al, 1999;Inderfurth et al, 2001;Fleischmann et al, 2002). For a recent review see Van der Laan et al (2004).…”

Section: Related Literaturementioning

confidence: 99%

Inventory control with product returns: The impact of imperfect information

Brito

Laan

2009

European Journal of Operational Research

View full text Add to dashboard Cite

show abstract

“…Kelle and Silver (1989) extend this study to cover fixed ordering costs. Fleischmann, Kuik and Dekker (2002) analyze the infinite horizon system and derive the optimal control policy. While the above papers focus on a single location, Decroix, Song and Zipkin (2005) analyze the steady state behavior of a series system, and study an assembly system.…”

Section: Literature Reviewmentioning

confidence: 99%

Consumer Returns Policies and Supply Chain Performance

2008

SSRN Journal

View full text Add to dashboard Cite

This paper develops a model of consumer returns policies. In our model, consumers face valuation uncertainty and realize their valuations only after purchase. There is also aggregate demand uncertainty, captured using the conventional newsvendor model. In this environment, consumers decide whether to purchase and then whether to return the product, whereas the seller sets the price, quantity, and refund amount.Using our model, we study the impact of full returns policies (e.g., using 100% money-back guarantees) and partial returns policies (e.g., when restocking fees are charged) on supply chain performance. Next, we demonstrate that consumer returns policies may distort incentives under common supply contracts (such as manufacturer buy-backs), and we propose strategies to coordinate the supply chain in the presence of consumer returns. Finally, we explore several extensions and demonstrate the robustness of our findings. AbstractThis paper develops a model of consumer returns policies. In our model, consumers face valuation uncertainty and realize their valuations only after purchase. There is also aggregate demand uncertainty, captured using the conventional newsvendor model. In this environment, consumers decide whether to purchase and then whether to return the product, while the seller sets the price, quantity, and refund amount.Using our model, we study the impact of full returns policies (e.g., using 100% money back guarantees) and partial returns policies (e.g., when restocking fees are charged) on supply chain performance. Next, we demonstrate that consumer returns policies may distort incentives under common supply contracts (such as manufacturer buy-backs), and we propose strategies to coordinate the supply chain in the presence of consumer returns. Finally, we explore several extensions and demonstrate the robustness of our findings.

show abstract

“…In addition, we address the potential benefit of improved information on future product returns. Results of this chapter have appeared in several publications (Fleischmann et al, 1997b;Fleischmann and Kuik, 1998;Van der Laan et al, 1998;Heisig and Fleischmann, 1999). Chapter 8 addresses some modelling extensions.…”

Section: Structuring Of the Thesismentioning

confidence: 99%