Vivien Schoepf , Arne K. Strauss , Moritz Fleischmann
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Benefits of vendor-managed inventory for the reverse logistics operations of returnable transport items
As closed-loop supply chains are gaining importance in many industries as key enablers of reduced waste and ecological footprint, new challenges arise in integrating forward and reverse logistic flows. We focus on a variant of the production routing problem and explore the benefits of vendor-managed inventory (VMI) policies for the reverse logistics operations of returnable transport items. A stochastic two-stage program accounting for the considerable uncertainty of return flows is developed and solved using sample average approximation and relaxation-based bounds. We find that the benefits of VMI are not only linked to lower operational costs but also higher performance stability. Further, in hybrid networks of partially VMI and non-VMI nodes, the strategic selection of nodes for VMI implementation can positively impact network performance.
期刊介绍:
Transportation Research Part E: Logistics and Transportation Review is a reputable journal that publishes high-quality articles covering a wide range of topics in the field of logistics and transportation research. The journal welcomes submissions on various subjects, including transport economics, transport infrastructure and investment appraisal, evaluation of public policies related to transportation, empirical and analytical studies of logistics management practices and performance, logistics and operations models, and logistics and supply chain management.
Part E aims to provide informative and well-researched articles that contribute to the understanding and advancement of the field. The content of the journal is complementary to other prestigious journals in transportation research, such as Transportation Research Part A: Policy and Practice, Part B: Methodological, Part C: Emerging Technologies, Part D: Transport and Environment, and Part F: Traffic Psychology and Behaviour. Together, these journals form a comprehensive and cohesive reference for current research in transportation science.