A newsboy inventory model with recyclable and defective items

In this research, we consider the products of a single-period inventory with fixed life cycle. The classical newsboy model was extended with return policy for reusable and imperfect items. The optimum order quantity is derived in cases with or without collaboration. Finally, Numerical examples are carried out to analyze the influence of the inventory system. From numerical examples, it is shown that profit with collaboration is highest in all situations. Obviously, the collaborative model is an approach to achieve the objective of integrating manufacturer-retailer channel.