Abstract: Manufacturers and distributors must cope with the increased flow of returned products from their customers.In response,many firms outsource their reverse logistics to TPL.If TPL handles returns faster,manufacturer can obtain more profit from returns,but leading to higher cost of TPL.So it is important to decide the optimal handling speed and allocation of total profit created by faster handling speed.In this paper we investigate the optimal handling speed by using the queueing model and discuss the factors influencing optimal handling speed.At last we establish a screening game model to get manufacturer's optimal strategy when he can't get the full information about TPL's handling cost type.

Key words: reverse logistics, supply chain coordination, TPL, queueing model, asymmetric information