Circular Economy, Recycling & Remanufacturing worked example

Reverse Logistics Cost at 99% shipments assigned to this recovery program: a worked example

What does the result look like when shipments assigned to this recovery program reaches 99%? The full calculation is worked below with real intermediate numbers. a team needs to compare collection routes, depot choices, carriers, or take-back economics for a route, region, program, or return period

The inputs for this scenario

  • Returns or containers collected: 3,100 shipments (unchanged)
  • Reverse logistics cost per return shipment: 18.5 $ / shipment (unchanged)
  • Shipments assigned to this recovery program: 99 % (raised for this scenario; the documented default is 93)
  • Fixed depot, routing, labeling, or carrier setup cost: 5,600 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Variable reverse freight and handling cost = returns or containers collected × reverse logistics cost per return shipment × shipments assigned to this recovery program) to the inputs above produces each figure below.
  • At this operating point the engine returns 62,377 total reverse logistics cost for total reverse logistics cost, the number this scenario is built around.
  • At this operating point the engine returns 20.12 $ / piece for reverse logistics cost per return.
  • At this operating point the engine returns 56,777 $ for variable reverse freight and handling cost.
  • At this operating point the engine returns 5,600 $ for fixed depot, routing, labeling, or carrier setup cost.

How this compares with the baseline

  • Against the tool's baseline example, where shipments assigned to this recovery program sits at 93% and the headline result is 58,936 total reverse logistics cost, this scenario comes in 5.84% above the baseline at 62,377 total reverse logistics cost.
  • A figure at this level is achievable when shipments assigned to this recovery program is genuinely sustained, not just peaked for a shift. A single average per-shipment rate hides wide variation between light parcel returns and heavy palletized containers, so mixed flows need segmenting.

Results at a glance

  • Total reverse logistics cost: 62,377 total reverse logistics cost (headline result)
  • Reverse logistics cost per return: 20.12 $ / piece
  • Variable reverse freight and handling cost: 56,777 $
  • Fixed depot, routing, labeling, or carrier setup cost: 5,600 $

Run it with your numbers

  • Every input above is editable in the live Reverse Logistics Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.