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1. Introduction
While the forward supply chain concerns the flow from raw materials to end products and from manufacturer to consumer (Govindan et al., 2015), reverse logistics (RL) concerns the reverse flow from consumer to manufacturer. RL is defined as “the process of moving goods from their typical final destination for the purpose of recapturing value, or proper disposal” (Rogers and Tibben-Lembke, 1998, p. 2). In this paper, the detailed definition by the Reverse Logistics Executive Council (RLEC) is used which states “Reverse logistics is a movement of materials from a typical final consumption in an opposite direction in order to regain value or to dispose of wastes. This reverse activity includes take back of damaged products, renewal and enlargement of inventories through product take back remanufacturing of packaging materials, reuse of containers, and renovation of products, and handling of obsolete appliances.” Blackburn et al. (2004) and Guide and Van Wassenhove (2003) identified five key RL processes that guide the movement and determine the value extraction described in RLEC’s definition. These five processes are core product acquisition, reverse transportation and inventory management, inspection and disposition, remanufacturing, and remarketing.
Separate logistics flows mean investments in separate physical facilities and systems. A combined flow will typically lead to increased complexity because the two flows differ greatly in nature (Rogers and Tibben-Lembke, 2001). The reverse flow is uncertain in terms of flow size and the condition of the returned goods, which translates into low standardization levels and more manual labor. Forward logistics, on the other hand, can be standardized to a higher degree and dwells on higher certainty regarding both input condition of the goods and processes. Making the right decision in the configuration of forward and RL can create substantial value and impacts the firm’s bottom line (Genchev et al., 2011; Jaaron and Backhouse, 2016; John et al., 2017).
Although the RL-concept has been intensively researched in recent years and from different perspectives (Huscroft, Hazen, Hall and Hanna, 2013; Huscroft, Hazen, Hall, Skipper and Hanna, 2013; Narayana et al., 2014), the decision of whether to combine forward and reverse logistical flows or keep them separated is under-researched (Krikke et al., 2013; Antonyová et al., 2016). Fleischmann et al. (2000) questioned...