Research On The Optimal Inventory Control Policy Based On Reverse Logistics

Today, due to the protection of environmental, cost control and enterprise’s competitiveness, application of theory of reverse logistics is becoming more and more popular in multi-national companies. However, reverse logistics in China is still in its infant stage, let alone the theoretical research. Facing fierce competition in the international market, Chinese enterprises will encounter challenges in management of reverse logistics. The paper aims to make a research on the inventory control strategies in the process of reverse logistics based on the theory of reverse logistics management.In Chapter I, the concept of reverse logistics, the value of paper and a review of related studies abroad and home are introduced. In chapter II, the relationship between reverse logistics and traditional logistics, the traditional inventory theory, the analysis of reverse logistics and the characteristics of reverse logistics inventory Model are presented. Chapter III analyse the inventory control strategy of reverse logistics under the conditions of demand certainty and demand uncertainty. Chapter IV elaborates the control strategy of the reverse logistics in multi-cycle stochastic inventory based on the probability distribution. First,an optimum model of inventory control policy as a single-period with the reverse logistics is created. Based on the first model, an analysis on a two-period optimum inventory control policy is established, and extended to infinite cases. Finally, the optimum control strategy of stochastic inventory is established for the system of n -cycled reverse logistics. Chapter V gives a summary and prospect of the research.This paper can be included as follows :Based on the research and practical use of reverse logistics, an n-period optimum stochastic inventory model with reverse logistics is established. Computational tests demonstrate the efficiency and feasibility of this model.