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Analysis of bullwhip effect and inventory cost in the online closed-loop supply chain

Analysis of bullwhip effect and inventory cost in the online closed-loop supply chain

Gao, Dandan, Wang, Nengmin, He, Zhengwen and Zhou, Li ORCID: 0000-0001-7132-5935 (2022) Analysis of bullwhip effect and inventory cost in the online closed-loop supply chain. International Journal of Production Research. ISSN 0020-7543 (Print), 1366-588X (Online) (doi:https://doi.org/10.1080/00207543.2022.2138609)

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Abstract

This paper focuses on the impact of return decisions on the bullwhip effect in the online closed-loop supply chain. We investigate the optimal return modes when the inspection system is undertaken by the logistics centre or the remanufacturer. Then, we optimise the online retailers’ return decisions of minimising the inventory cost and bullwhip effect under different supply chain circumstances. Distinctive from previous conclusion that the inspection operation is usually undertaken by the remanufacturer to sort the returned products, the analysis results reveal that the optimal decision of mitigating the bullwhip effect in most cases is to set the inspection system on logistics centre. Besides, consumers’ return and exchange behaviours in e-commerce have different impacts on the supply chain efficiency. The product return can not necessarily mitigate the information distortion
in online closed-loop supply chain. The research provides insights for managers to strategise about return policies and resource allocation in different e-commerce contexts.

Item Type: Article
Uncontrolled Keywords: closed-loop supply chain; inspection; e-commerce; return; bullwhip effect
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Faculty / School / Research Centre / Research Group: Faculty of Business
Faculty of Business > Department of Systems Management & Strategy
Faculty of Business > Networks and Urban Systems Centre (NUSC)
Faculty of Business > Networks and Urban Systems Centre (NUSC) > Connected Cities Research Group
Related URLs:
Last Modified: 05 Nov 2023 01:38
URI: http://gala.gre.ac.uk/id/eprint/37937

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