Optimal returns policy for supply chain with e-marketplace

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

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Original languageEnglish
Pages (from-to)205-227
Journal / PublicationInternational Journal of Production Economics
Issue number2
Online published6 Aug 2003
Publication statusPublished - 28 Mar 2004
Externally publishedYes


We study in this paper a supply chain which is integrated by a returns policy. In the past, owing to a lack of sales channels, the returned products would worth very little. Now, with the advance of the e-commerce, the returned products can be sold with a higher price on the e-marketplace. In light of this, we first investigate the optimal returns policy under the existence of the e-marketplace. Through a mean-variance analysis, we further study the risk issue associated with the optimal policy. Extensive simulations are then carried out and the managerial insights are discussed.

Research Area(s)

  • E-marketplace, Mean-variance theory, Returns policy, Risk management, Supply chain management