Shipment policy optimisation in a return supply chain for online retailers via stochastic discrete event simulation

Haobin Li, Giulia Pedrielli

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Limiting the costs for return of products is a key competing factor for online retailers. In fact, free returns are considered an important performance to the customer. However, to guarantee free returns, the company has to precisely estimate the costs implied in the return supply chain. In this paper, we specifically look at the problem of international online retailers that have to manage the shipment of return products between different countries. In this scope, we first formalise the return process and we propose a two-parameters strategy to manage the shipment of returned products across countries. In order to solve the problem, we propose to use simulation-optimisation, resulting in a general solution approach not limited by stringent assumptions.

Original languageEnglish (US)
Pages (from-to)241-258
Number of pages18
JournalInternational Journal of Simulation and Process Modelling
Volume11
Issue number3-4
DOIs
StatePublished - 2016
Externally publishedYes

Fingerprint

Stochastic Simulation
Discrete event simulation
Discrete Event Simulation
Supply Chain
Supply chains
Optimization
Costs
Simulation Optimization
General Solution
Two Parameters
Customers
Limiting
Industry
Estimate
Policy

Keywords

  • Discrete event simulation
  • Optimisation
  • Return supply chain
  • Shipment policy

ASJC Scopus subject areas

  • Modeling and Simulation
  • Computer Science Applications
  • Applied Mathematics

Cite this

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