A decision making model for reverse logistics in the computer industry

Purpose - This paper seeks to present a decision-making model for manufacturers to maximize their profits in reverse logistics operations. Design/methodology/approach - A system dynamic model has been developed to complement with prior models and is validated using data collected from a computer company manufacturer handling returns with volumes transacted over a period of two years. Findings - The results from the model indicate that part replacements from suppliers are more profitable than refurbished computer parts. In addition, transportation delay and supplier delay in processing returns have a significant impact on the viability of reverse logistics regardless of return volumes.