Research On Decision Of Network System And On Inventory Management Of Reverse Logistics

Given the value inherent to the waste and used products, reverse logistics has been winning more and more attention, along with the deterioration of the relationship between the supply and demand of energy, and the public's rising awareness of environmental protection. Reverse logistics can bring economic interests to a company as well as great strategic values. It is composed of two important fields—network system and inventory management. To a certain extent, the form of the network system determines the form of inventory management.This thesis, first of all, gives an introduction to the basic theories of reverse logistics and sums up the current states of relevant studies. Then it puts forward the factors to take into consideration and the methods available for a company to choose a proper form (sharing, self-building, co-building and subcontracting) of reverse network system. Nowadays, the market is customer-oriented. Accordingly, it has become commonplace to refund the customers and accept return product. Therefore, this paper takes reverse logistics into the model of traditional inventory management and moves on to set a new model of reverse logistics that allows returned products and stock out. At the same time, in light of the randomicity of market demand and returning products, the thesis applies the Markov Theory to set up a model of the random costs of reverse logistics. This not only enriches the inventory control theory and extends the application space of the inventory model, but also provides scientific evidence for network and inventory decision-making under the reverse logistic strategy.