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Purpose

The purpose of this paper is to provide a tool for decision makers to make more informed decisions regarding their outsourcing policies.

Design/methodology/approach

In this study it is assumed that recycling or remanufacturing of these returns will soon be a must for original equipment manufacturers. The paper presents a multi‐phased decision model for strategic analysis of outsourcing such activities.

Findings

The proposed decision model provides a comprehensive tool for effective decision making by considering economic as well as strategic factors.

Practical implications

The procedure proposed here can help practitioners with their outsourcing decisions. The model presented is conceptual. Application and validation is still required.

Originality/value

The paper describes a new decision model that considers both strategic and economic issues of outsourcing reverse logistics activities.

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