Article
Value recovery network design for product returns
Abstract
Purpose – The purpose of this paper is to use a conceptual model from literature for designing value recovery (VR) networks for three categories of post-consumer product returns. Design/methodology/approach – A bi-level optimization model is developed to determine the disposition decision for refrigerators, washing machines and passenger cars in the Indian context using data for product returns from literature. Using standard off-the-shelf software, the break-even values of returns are calculated for setting up various VR facilities under different scenarios to maximize profits for a ten-year time-horizon.