Study On Supply Chain Coordination In Reverse Logistics

At present the management of reverse logistics is a new challenge for firms. How to reduce the unnecessary returns and the cost of reverse logistics attract more attentions. In this paper, the theory and methods of Operations Research Game Theory, Economics, Management are used to analysis the supply chain coordination problems in reverse logistics with the aim of offering guide to practice.Firstly, we study the problem of how the supplier can reduce the false failure returns by coordinating with the retailer when the retailer's efforts can reduce such returns. Based on previous literature, we present an easily operating contract based on the rate of false failure returns.Then we study the problem of how the supplier can reduce the damage or failure of goods in the logistics operational processes by coordinating with the third party logistics provider. Contracts are presented with both symmetric and asymmetric information of the cost of third party logistics provider.At last we consider the problem of the optimal handling speed of perishable product returns. In addition, the coordination mechanism is studied when the manufacturer outsources the reverse logistics to a third party logistics provider and has no full information of his handling cost.