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Using activity‐based costing to reengineer the reverse logistics channel

Thomas J. Goldsby (Department of Logistics, Operations and MIS, Iowa State University, Ames, Iowa, USA, and)
David J. Closs (Eli Broad Graduate School of Management, Michigan State University, East Lansing, Michigan, USA)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 1 August 2000

Abstract

Activity‐based costing (ABC) is a tool used by managers to more closely approximate the “true costs” of operations. The application of ABC in logistics is more commonplace today than just a few years ago, though still far short of universal. Sound tracking of operational costs is critical when pursuing the logistics objective of providing desired customer service at the lowest total cost. This research illustrates an actual application of ABC to reverse logistics activities performed across supply chain organizations. More specifically, a case study of a Michigan beverage distributor and retailer that collect empty beverage containers for recycling purposes is presented. The case study demonstrates the ABC application in detail and discusses the re‐engineering of supply chain‐wide processes resulting from the analysis.

Keywords

Citation

Goldsby, T.J. and Closs, D.J. (2000), "Using activity‐based costing to reengineer the reverse logistics channel", International Journal of Physical Distribution & Logistics Management, Vol. 30 No. 6, pp. 500-514. https://doi.org/10.1108/09600030010372621

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MCB UP Ltd

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