A reverse logistics profitability system dynamics model of high volume returns with deterioration in computer industry

The increasing environmental concerns related to electrical and electronic equipment (EEE) wastes and their economic value have led companies to manage their product returns properly. In the real world, the value of the returns is not constant with respect to time. Treating the returns as perishable goods is important due to the degradation of its market value over time. This research presents the profitability measurement of reverse lognisitcs operations in a computer manufacturing with deteriorated returns. It is modelled by means of System Dynamics methodology. Secondary data from a case study is employed in the simulation experiments. Some influencing factors are evaluated under a system environment with high return volume and medium airfreight cost. The results are provided in numerical forms.