The return policy with time-limit based on consumer inertia

Based on consumer behavior, this paper studies retailer´s return policy. It introduces both customer inertia and returned time-limit into the return policy for the first time. First, this paper analyzes the inert customer´s purchase/return behavior; second, it builds an extended returned model based on the classic newsvendor model; at last, it gives a numeral example using the software matlab, which clearly illustrates the application of our model in the real condition. By analyzing the mathematical model, we can know the seller´s optimal sales price and returned price.