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Optimal cross-channel return policy in dual-channel retailing systems

Mohannad Radhi and Guoqing Zhang

International Journal of Production Economics, 2019, vol. 210, issue C, 184-198

Abstract: Many dual-channel retailers sell their products through both a physical store and an online store. Allowing unsatisfactory online purchases to be cross-returned to the physical store together with same-channel returns is one of the practical strategies used in the dual-channel retailing industry. Many of those returns are intact and undamaged and, thus, can be resold. But there is a lack of the research on how those resalable returns impact the order quantities of each channel. In this paper we study and compare four different return policies where a dual-channel retailer offers both same- and cross-channel returns. For each return policy, we propose mathematical models to determine optimal order quantities that account for the impact of resalable returns. Several insights on the different cross-channel return policies and some properties of the optimal solutions are presented.

Keywords: Cross-channel returns; Dual-channel; E-commerce; Reverse supply chains; Newsvendor model (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (28)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:210:y:2019:i:c:p:184-198

DOI: 10.1016/j.ijpe.2019.01.014

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