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| Author: | Fleischmann, M. Kuik, R. |
| Title: | On optimal inventory control with independent stochastic item returns |
| Journal: | European Journal of Operational Research
2003 : NOV, VOL. 151:1, p. 25-37 |
| Index terms: | Inventory control Optimization Materials management Cost functions |
| Freeterms: | Reverse logistics |
| Language: | eng |
| Abstract: | To a growing extent companies take recovery of used products into account in their material management. One aspect distinguishing inventory control in this context from traditional settings is an exogenous inbound material flow. The authors analyze the impact of this inbound flow on inventory control. To this end, the authors consider a single inventory point facing independent stochastic demand and item returns. The authors show that the model can be transformed into an equivalent model with non-negative demand only. Moreover, the authors prove average cost optimality of an (s,S) order policy. The results in this paper document that stochastic return flows (alone) do not render from a mathematical perspective. |
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