Multi-Layer Multi-Product Reverse Supply Chain: Defects and Pricing Model

In this chapter, a multi-layer reverse supply chain is considered and modeled with respect to the defects of the returned items. During the process of producing a product and getting it to the end consumer, there will be some costs, and one of these costs is the cost of rejecting the product. We considered three kinds of defects that might cause a product to be rejected, including defects due to improper transportation, defects due to improper production, and defects due to improper packing. Then, an interactive pricing is implemented for the returning products.