Reverse logistics supply chain process modeling and simulation

Abstract

As consumer preferences shift towards online shopping and utilizing their homes as fitting rooms, traditional brick and mortar retailers are faced with the challenge to adapt. Many retailers are experiencing a growing number of returned merchandize, many of which cannot be easily resold to consumers due to various supply chain challenges. This thesis explores the opportunities to improve the consumer returns process and presents methods for modeling the supply chain process for reverse logistics in the retail industry derived from case studies. The model then allows for hypothesis testing. By changing parameters in the model, this thesis further explores the scenarios in which the supply chain process may be improved to increase margin and decrease cost. The primary recommendations include specific modifications to the current reverse supply chain flow, enabling new channels that improve speed and margin, as well as developing the decision tool further for better accuracy and integration into the supply chain.