Priyanka Lal

Dr. L. Ganapathy

Dr. Ashok K. Pundir

Dr. N. Sambandam

Abstract

This paper presents a mathematical model for profit optimization by third party reverse logistics providers in the supply chain. Computational results and sensitivity analysis is provided after testing the model with sample data. It is seen that profit is sensitive to market price and volume of return quantity, but less sensitive to quality of return products. Further, profit is affected by variable costs of reprocessing and also costs of transportation and collection. The findings will be useful to real life practitioners engaged in handling reverse logistics in various sectors.

Keywords- Reverse Logistics, Third Party Logistics, Profit maximisation