Impact of reverse logistics on supply chain performance

Purpose – The purpose of this paper is to analyse the impact of reverse logistics on order and inventory variance amplification in a single-echelon supply chain (SC) and to propose a new order policy for dampening such amplification. Design/methodology/approach – A general review of the literature on sustainable operations and on the impact of reverse logistics on SC performance provides the foundation for the study. The authors use difference equation math approach for modelling and analysing a closed SC. A proper design of experiment and data collected from the European Union statistics validate the obtained numerical results. Findings – The variability of reverse flow in a closed loop S…