What is Auto Recall

Reverse Logistics has become an important concept in today's supply chain operations. Besides being an old concept, it was hard to find in literature a precise differentiation from some recycling terminology. This chapter starts with a detailed explanation of Logistics and Reverse Logistics concepts, and then continues with the processes carried out in reverse logistics systems, and also the effects on marketing of the products that are subject to the reverse logistics. With all that, the case of automobile recalls will be included in the research scope of this chapter as an exploratory example. Precisely, the literature shows valid examples of direct relationship between recall of automobiles and their demand. In light of the literature, and real-world examples automobile recalls are examined to better explain the concept of reverse logistics.