An inventory model with dependent product demands and returns

Gudrun P. Kiesmüller, Erwin A. Van der Laan

Research output: Contribution to journalArticlepeer-review

116 Scopus citations


In this paper an inventory model for a single reusable product is investigated, in which the random returns depend explicitly on the demand stream. Further, the model distinguishes itself from most other research in this field by considering leadtimes and a finite planning horizon. We show that neglecting the dependency between demands and returns of products may lead to bad performance with respect to total average relevant costs. Additionally, our results enable us to determine the minimal recovery probability or the minimal length of the planning horizon for which reuse is profitable.

Original languageEnglish
Pages (from-to)73-87
Number of pages15
JournalInternational Journal of Production Economics
Issue number1
StatePublished - 30 Jun 2001
Externally publishedYes


  • Markov chain
  • Order-up-to policy
  • Remanufacturing
  • Reusable products


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