This document provides an overview of reverse logistics processes and models. It begins with an introduction stating that reverse logistics is increasingly important as companies can no longer afford to neglect it, accounting for 7-10% on average. The document then briefly discusses the history of reverse logistics, its relationship to e-commerce, and three models of reverse logistics processes: the integrated supply chain model, hierarchical connection model, and economic order quantity model. It concludes that reverse logistics provides a competitive advantage and is important for customer service through maintaining strong customer relationships and analyzing returns data.

1. Management of reverse logistics
processes
Dalibor Doubek
January 2015

2. Content
• Introduction
• Brief history
• Reverse Logistics and e-commerce
• Reverse Logistics models
– Integrated Supply Chain (Thierry)
– Hierarchical connection of reverse logistics
activities (Dekker)
– Economic order quantity model (Schraddy)
• Reverse Logistics as a Customer Service

3. Introduction
• Reverse logistics is everywhere
• Companies can not longer afford to neglect
reverse logistics
• Share 7% to 10% (average)

4. Brief history
• Roots in the military (the American Civil War)
• The customer service policy of Montgomery
Ward’s
• Auto industry

5. Reverse Logistics
& e-commerce
• E-commerce is the future for the logistics
• The returned volume of e-commerce increases
sharply (a right to return products)
• Collecting reverse logistics data and
information is difficult and complicated
• Many recyclables are high value products

6. Reverse Logistics models
- Integrated Supply Chain (Thierry)

7. Reverse Logistics models
- Hierarchical connection (Dekker)

8. Reverse Logistics models –
Economic Order Quantity model
(Schrady)
m * Qp + n * Qr = d * T
n * Qr = r * d * T
m - number of
procurements
QP - procurement
quantity
n - number of repair
batches
QR - repair batch size
d - demand rate
r - the recovery rate
T procurement/repair
cycle time

9. Reverse Logistics as a Customer
Service
• Competitive advantage
• Important market differentiators
• Maintain strong customer relationships
• Reverse logistics more complex than forward
logistics
• Analyse returns data to discover root causes

10. Questions?

11. Thank you for your attention