Return Policies

Internal Table Name: ReturnPolicies

Use the Return Policies table to define destination rules for sending returns, including cases where multiple locations are available. An item, either defective or otherwise, may be returned back to its origin. Return Policies allow you to differentiate returns from normal supply chain activity, including the costs associated with the return. Use the Return Product Ratios table to define the relationship between received and returned products by customer.

A returns model can be single period if you are just tracking the movement of products back to the destination. However, if you plan to reuse the returned products, the model must then be multi-period because the returned products cannot be used to fulfill demand more than once in the same period.

Return Policies are considered unique based on the combination of Period, Customer, Product and Destination.

Evaluation of policy records depends on the use of groups and filters for the columns listed above. For more information, see Group precedence.

Period

Technology: NO S

Table: ReturnPolicies

Internal Name: PeriodName

Type: Short Text (100)

Select the period in which the return policy occurs.

Customer

Technology: NO S

Table: ReturnPolicies

Internal Name: CustomerSite

Type: Short Text (100)

Select the source or source group for which a return policy is being made.

Product

Technology: NO S

Table: ReturnPolicies

Internal Name: ReturnedProductName

Type: Short Text (100)

Select the product or product group that being returned (going back to the network). It should match the Return Product as defined in the Return Product Ratios table. This is the product for which a return policy is defined.

Destination

Technology: NO S

Table: ReturnPolicies

Internal Name: DestinationSite

Type: Short Text (100)

Select the destination or destination group for which a return policy is being made.

Return Policy

Technology: NO S

Table: ReturnPolicies

Internal Name: ReturnPolicy

Type: Short Text (255)

Enumerated list.

Choose the Return Policy to be used this Customer-Product-Destination combination:

Default: None

Policy Parameter

Technology: NO S

Table: ReturnPolicies

Internal Name: PolicyParameter

Type: Short Text (255)

The parameter is used based on the Return Policy specified:

• Split by Ratio – Returns are divided according to ratios established by the numbers specified in the Policy Parameter field, and then returned out to the respective destinations.
  • If the value is non-zero, use the exact value to establish the ratio. For example, if you enter 6 for one record and 2 for the other, then 75% uses the first record and 25% uses the second.
  • If the value is 0 or null, this record is not considered (similar to setting Status = “Exclude”).
• Split by Probability – Returns are divided according to the percentages specified in the Policy Parameter field, and then returned out to the respective destinations.
  • If the value is non-zero, use the exact value. For example, if you enter 50, then 50% uses this record. The Parameter values should add up to 100, which represents 100%, however if the inputs do not add up to 100, the values will be scaled to 100 automatically.
  • If the value is 0, this is treated as 0% and this record is not considered (similar to setting Status = “Exclude”).
  • If the value is null, this record is considered “free”. In the case that all records with non-zero parameter values add up to less than 100%, the solver can determine the percentage for any free records. In the case that the non-zero parameter records add up to 100%, the free records are not considered (similar to Status = “Exclude”).

Unit Return Cost

Technology: NO S

Table: ReturnPolicies

Internal Name: ReturnCost

Type: Short Text (50)

Enter the cost associated with the return.

Status

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Table: ReturnPolicies

Internal Name: ReturnPoliciesStatus

Type: Short Text (25)

One of Include, Exclude.

Choose the return policy status:

• Include – This return policy is to be included in a simulation or optimization run.
• Exclude – This return policy is to be excluded from a simulation or optimization run.
• Consider – In optimization, the design engine will determine if this return policy should be used.

Default: Include

Notes

Technology: NO S

Table: ReturnPolicies

Internal Name: ReturnPoliciesNotes

Type: Memo

Enter optional descriptive notes about the return policy.