Reverse logistics in a pharmaceutical company

A case study

Abstract

In this paper we discuss the two main reverse logistics processes at the pharmaceutical company Schering. Both are associated with the production of active ingredients from raw material. Firstly, by-products are reused, because they contain valuable materials. Secondly, impure solvents are recycled or thermally utilized. We describe these reverse logistics processes and discuss their effects on production planning and inventory control. Additionally, we give insights into the economic valuation of product recovery.