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Reverse logistics (RL) is a systematic process that manages the flow of products/parts from the point of consumption back to the point of manufacturing for possible recycling, remanufacturing, or disposal. Although the concept of RL is well-known in logistics and supply chain management, the available holistic literature and theory of RL are scarce. This paper surveys current RL literature and identifies the present state of theory in RL by formulating the propositions for strategic factors. The approach used is grounded theory development. The strategic factors are in turn delineated and evaluated in terms of specific sub-factors associated with each factor by the use of interview protocol and within the context of an in-depth analysis of two companies in different industries that are engaged in remanufacturing/recycling operations within RL systems. The analysis of these case studies, using the grounded theory approach, resulted in insights regarding their RL practices. Based on these insights and strategic factors and sub-factors, a framework for effective design and implementation of remanufacturing/recycling operations in RL is provided. This framework allows for the determination of the viability of returned products/parts in the RL system. The findings outline how our RL theory is enhanced and how our understanding of RL practices with respect to remanufacturing/recycling operations is improved. In conclusion, managerial implications and future research directions are presented.
Shad Dowlatshahi (Mon,) studied this question.