Article | REF: AG5251 V1

Setting up reverse logistics - Industrial case

Author: Ruddy SOCHAY

Publication date: October 10, 2003

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4. Returns inventory management and reintegration into production

At present, very few studies have been carried out on this subject. For the time being, there are two methods available. The first consists in integrating returns directly into the company's inventory (a concept known as "double sourcing"), while the second consists in creating two types of inventory (a method commonly referred to as "remanufacturing in separate units"). This second method is the most commonly used, as it enables easier planning and is more in line with reality. In fact, if we add returns to the company's inventories, and consider that these are random, there is an additional variable to be added to inventory management.

That's why, in our case, we feel that the second method will enable the company to get its reverse logistics off to a good start, with the medium-term aim of working with the double-sourcing method.

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Returns inventory management and reintegration into production