Optimal returns policy for supply chain with e-marketplace

Tsan Ming Choi, Duan Li, Houmin Yan

Research output: Journal article publicationJournal articleAcademic researchpeer-review

118 Citations (Scopus)


We study in this paper a supply chain which is integrated by a returns policy. In the past, owing to a lack of sales channels, the returned products would worth very little. Now, with the advance of the e-commerce, the returned products can be sold with a higher price on the e-marketplace. In light of this, we first investigate the optimal returns policy under the existence of the e-marketplace. Through a mean-variance analysis, we further study the risk issue associated with the optimal policy. Extensive simulations are then carried out and the managerial insights are discussed.
Original languageEnglish
Pages (from-to)205-227
Number of pages23
JournalInternational Journal of Production Economics
Issue number2
Publication statusPublished - 28 Mar 2004
Externally publishedYes


  • E-marketplace
  • Mean-variance theory
  • Returns policy
  • Risk management
  • Supply chain management

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering


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