A classical and simulated approach of cost optimisation in reverse logistics process for e-commerce business

Article Type

Research Article

Publication Title

International Journal of Procurement Management

Abstract

The purpose of this paper is to establish the proper utilisation and allocation of resources in an e-commerce reverse logistics network to minimise the overall cost. This study formulates the reverse logistics network of e-commerce business into a binary integer programming model. It solves a numerical problem by this classical approach to find out the optimal cost through optimal assignment of resources and path allocation for transporting the products. Simulation is performed next to replicate the real-life reverse logistics scenario of e-commerce business. Finally, a sensitivity analysis is carried out to observe the impact of proper utilisation of the resources on reducing the total operation cost significantly. It encourages e-commerce business for optimal allocation of logistics agents and vehicles, and utilisation of the regional hubs and sorting facilities for transporting the returned products. The study also highlights the scope of future research both from theoretical and managerial perspectives.

First Page

498

Last Page

524

DOI

10.1504/IJPM.2024.142790

Publication Date

1-1-2024

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