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Improving Reverse Supply Chain Operational Performance: A Transshipment Application Study for Not‐for‐Profit Organizations
Author(s) -
Reyes Pedro M.,
Meade Laura M.
Publication year - 2006
Publication title -
journal of supply chain management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1523-2409
DOI - 10.1111/j.1745-493x.2006.04201005.x
Subject(s) - transshipment (information security) , business , supply chain , industrial organization , supply chain management , profit (economics) , process management , operations management , computer science , marketing , microeconomics , economics , computer security
SUMMARY This paper describes an approach for improving the operational performance in the reverse supply chain in a not‐for‐profit environment. The authors present a model based on risk pooling through preventive lateral transshipment as a method for improving the responsiveness of not‐for‐profit core business practice of redistributing donated products in order to increase revenues. The model considers a three‐echelon structure consisting of three collection centers, one sorting and disposition center, and three retail stocking locations. The ensuing simulation indicates a favorable response of the model. Results indicated that while the daily average inventories slightly increased, the frequency of lost sales significantly decreased, thus offering the potential increased revenues.