Measuring reverse supply chain efficiency with the rate of return on investment in recovery

摘要

Abstract:This paper investigates the impact of the rate of return on investment in recovery (RRIR) in a two-echelon supply chain, which consists of remanufacturing cost savings, demand price sensitivity and scaling parameter, then, using the RRIR to measure the supply chain efficiency. The result shows that the RRIR is increasing in cost savings and demand price sensitivity, and is decreasing in scaling parameter.It is found that measuring revere chain efficiency with RRIR is simpler, because the market size is unnecessary to be estimated when the manufacturer evaluate the channel efficiency.