Aspects of reverse logistics economics [Elektronski vir]
Levičar, Stanislav
Increasing demands for more environmentally responsible production processes and obligations for taking care of the product for its entire life cycle has forced producers to introduce upgrades to ...their existing processes or even entirely new production lines that were specialized in specific phases of product reuse activities. This paper deals with reverse logistics as one of the most important sets of processes that enables companies to tackle these problems. The nature and complexities of reuse activities vary greatly and have different economical implications for the producer. To enable better understanding of the subject, important aspects of reverse logistics context are explained in the first part, since the potential for results of the products is interdependent with the motivation for recycling and reusing, the type of recollected products and materials, the form of reuse, and the participating agents. Many combinations, in which reverse logistics activities are being carried out, imply different considerations that must be elaborated to successfully plan, manage and execute those activities. Those are usually disadvantaged in comparison to forward logistics activities by two most common properties that are inherently related to the very nature of reverse logistics' subjects that it is dealing with: risks and uncertainty that are caused by lack of information, and the much more variable quality, quantity and timing of used product sources. Additionally, complexity arises when forward and reverse logistics systems are integrated, where extensive support in the form of information technology and advanced planning of designing production enable optimal integration of both systems. In the second part of this paper the following three segments of reverse logistics are defined and estimated through previously mentioned aspects: reverse distribution, inventory management and production planning. The aim of this paper is to help producers evaluate their reuse efforts with reverse logistics, and to contribute to complete reverse logistics economics understanding and better decision making.
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