Managing Storage Location and Capacity for Reverse Logistics The Case of Carlsberg Denmark A/S

J. Liangsiri, L. Englyst, and J. Johansen (Denmark)


Reverse logistics, storage location and capacity, returned goods, simulation


Location and configuration of storages are among the critical areas in designing an effective and efficient reverse logistics network. Reverse logistics is different from forward logistics in several ways. One of them is that the volume and types of returned goods are uncontrollable. Despite of that, they can still be estimated. Simulation, which is one of the practical tools, is chosen to support the estimation in this study. The paper describes a case of a beverage manufacturer. It includes the processes of managing and estimating of storage location and capacity. Moreover, it underlines the use of simulation in estimating the returned goods. Finally, a general framework for managing storage location and capacity for reverse logistics by simulation is developed and the related parameters and criteria are pointed out.

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