Extended EOQ model considering demand fluctuation in reverse logistics

Based on Dobos & Richter model, this paper proposes an extended EOQ model considering demand fluctuation with three recovery options in Reverse logistics. The model assumes Production Distribution to meet demand fluctuation and Disposal Distribution to conform to the dynamic quantity of recoverable used items. We find the optimal strategies by minimizing the total cost. Case studies demonstrate the extended model can obtain optimal decisions for minimizing total cost in production management considering Reverse Logistics.