Simulating Reverse Logistics in the Fashion Industry: A Case Study for a UK Footwear Company

We report on a case study of a footwear retailer in the UK, experiencing a higher rate of returns during the pandemic and needing support with the operational planning of its reverse logistics processes. We use semi-structured interviews to derive an understanding of the problem addressed with simulation modelling. Operational concerns about the costs related to product returns were raised in the interviews. Hence the simulation model focuses on this aspect by exploring the number of staff to returns ratio to achieve the targeted percentage of returned items processed within a certain number of working days. We conclude that other fashion companies might benefit from reviewing their reverse logistics operations especially in anticipation of escalating product returns.