Abstract
This paper deals with return flows of products from the consumers to the manufacturer in the closed loop supply chain. A mathematical model is developed to determine the optimal collection period at an initial collection point before transshipping the returned products to a centralized return center. Inventory cost at an initial collection point is traded off with transportation cost to the centralized return center in the presence of freight quantity discounts. To reflect a realistic product return process, we analyzed the case of discrete collection time period.
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