Returned Goods Authorization (RGA) is a formal process used by companies to manage customer product returns. Customers must receive authorization before returning products for credit, repair, or replacement. RGAs help businesses control return volumes, track reasons for returns, and determine whether returned items can be restocked or need refurbishment or disposal. Inventory optimization systems incorporate RGA data to adjust demand forecasts, restocking plans, and inventory valuation. Analyzing RGA patterns also helps identify product quality issues or order fulfillment errors that affect inventory health.
