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A Markov model of liquidity effects in reverse logistics processes: The effects of random volume and passage

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  • Wilcox, William
  • Horvath, Philip A.
  • Griffis, Stanley E.
  • Autry, Chad W.

Abstract

Firms at various levels of the supply chain are implementing reverse logistics systems to maximize the value captured from products flowing backwards from customers to suppliers. However, due to the sporadic and unpredictable cash outflows associated with returns, firms must take care to avoid liquidity problems. Previous work addressing reverse logistics liquidity issues has considered long-term expectations, uncertainty, and shock potential inherent in the retail reverse logistics process, but the impact of the expected returns volumes and random return quantities within fixed-scale systems has yet to be explored. The current paper addresses these concerns.

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  • Wilcox, William & Horvath, Philip A. & Griffis, Stanley E. & Autry, Chad W., 2011. "A Markov model of liquidity effects in reverse logistics processes: The effects of random volume and passage," International Journal of Production Economics, Elsevier, vol. 129(1), pages 86-101, January.
    • Handle: RePEc:eee:proeco:v:129:y:2011:i:1:p:86-101
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    Cited by:

    1. García-Rodríguez, Francisco J. & Castilla-Gutiérrez, Carlos & Bustos-Flores, Carlos, 2013. "Implementation of reverse logistics as a sustainable tool for raw material purchasing in developing countries: The case of Venezuela," International Journal of Production Economics, Elsevier, vol. 141(2), pages 582-592.
    2. Agrawal, Saurabh & Singh, Rajesh K. & Murtaza, Qasim, 2015. "A literature review and perspectives in reverse logistics," Resources, Conservation & Recycling, Elsevier, vol. 97(C), pages 76-92.
    3. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    4. Sanni, S. & Jovanoski, Z. & Sidhu, H.S., 2020. "An economic order quantity model with reverse logistics program," Operations Research Perspectives, Elsevier, vol. 7(C).

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