Reverse logistics refers to the management of theflow of return goodsfrom the point of consumption to the point of origin, for the purpose of recapturing value by either making it re-usable in a market or by proper disposal. Strict environmental regulations and customer demand for green products,coupled with business opportunities in remanufacturing used products have resulted in producers taking back their products after use. When a returned product reaches the producer, there is anoption of remanufacturing the product to meet demand (apartfrom manufacturingfresh products), or stocking it for later use, or disposing it. In this backdrop, we propose periodic review inventory control policies involving stocking and disposal options. Selectively stocking returned items turnsout to be equivalent to manipulating the eflective lead time of remanufacturing of returned items, which is known to influence the total costs. We use simulation to establishgood policies of diflerent types; a single order level (one-parameter) policy and two-parameter policies involving stocking and disposal options. We propose a heuristic for the single parameter disposal policy and suggest a numerical search method for computing the optimal values of two-parameter policies. However, we recommend one-parameter policies as they have shown to be suficiently eflective in performance, and are much easier to implement. Such policies are expected to form a part of the planning systems in organisations in future, due to increased legislation and commercial pressures.