ABSTRACT
Reverse logistics (RL) and closed-loop supply chains are necessary for effective green supply chain management. RL activities help to extend the life of a product, reduce resource consumption, and mitigate negative environmental impacts. The closing-the-loop developments have not been as extensive as forward supply chains that deliver products and materials to consumers and have significant potential for further improvement by organizations. This chapter begins by defining reverse logistics. The driving forces, including legislative pressures, economic gains, environmental consciousness of consumers and producers, and customer services, are then discussed. Recognizing the complexity of RL, this chapter describes four significant RL management problems: RL network design, limiting the input of products into reverse logistics, building flexibility into RL activities, and the treatment of collected end-of-life products. Four types of RL networks—integrated outbound and returns network, nonintegrated outbound and returns network, third-party returns management, and return to suppliers—are also presented. The broader concepts of the circular economy and industrial ecology are linked to RL.
