Comparison of disposal strategies in linear reverse logistics models

Abstract

Abstract In this paper we investigate disposal activities in a reverse logistics models with linear costs structure. The two models have different disposal strategy. The first model analyzes a continuous disposal strategy, i.e. disposal can happen in every time in the planning horizon. This type of models was investigated in earlier works. The second possible disposal strategy assumes that disposal is only at the end of the planning horizon. After characterization of the optimal strategies of the two models we compare the costs and the trajectories of the optimal paths. The result of the paper is that the relevant costs are higher in case of disposal at the end of the planning horizon. It is cost efficient to dispose off the not necessary products inside of the planning horizon.