Systems and methods of supply distribution optimization driven reverse logistics

Abstract

A system and method are disclosed for reverse logistics of inventory. The method includes identifying existing reverse logistics contracts, predicting demand for items sold, predicting that a first supply chain entity is likely to have excess inventory for the items based on an expected future inventory of the items and the predicted demand for the items, notifying other supply chain entities of the predicted excess inventory at the first supply chain entity, predicting an inventory shortage at a second supply chain entity of the supply chain network, comparing a cost of transferring the excess inventory to the second supply chain entity with a cost of other options of obtaining additional inventory, in response to determining that the cost of transferring the predicted excess inventory is less than the cost of the other options, generating a reverse logistics plan, and initiating and executing the reverse logistics plan.