A hybrid generalized TODIM approach for sustainable 3PRLP selection in electronic manufacturing industry

Abstract

Under the pressure of globalization, environmental protection/resource consumption, and the intensification of market competition, various industries have recognized the significant importance of sustainable supply chain management (SCM), in which reverse logistics (RL) has attracted many concentrations from governments to enterprises and the public. However, it is relatively difficult to operate RL autonomously for most electronic manufacturing companies whose core businesses and competition advantages are not in logistics operations because of limited resources and professional skills. Therefore, it is a good choice to escape from the predicament by selecting an appropriate third-party reverse logistics provider (3PRLP) with professional skills for outsourcing and accomplishing the RL business. Generally, evaluation and selection of a 3PRLP is regarded as a multi-attribute group decision-making (MAGDM) process, in which four aspects, namely, the evaluation attributes system, weight of experts and attributes, preference information representation and alternative ranking method have impacts on the decision-making results. Therefore, this paper constructs an MAGDM framework named generalized TODIM (TOmada de DecisãoInterativa e Multicritério, Portuguese acronym for Interactive multicriteria decision-making) under a hybrid information environment, which includes crisp numbers, interval numbers and fuzzy linguistic terms, for solving the problem. It provides a useful reference for manufacturing enterprises to find out the optimal 3PRLP from many alternatives. In particular, the use of different information forms for different evaluation attributes can not only facilitate decision makers to provide their judgments, but also effectively retain the original decision information as much as possible. Utilization of the generalized TODIM method is helpful for considering the risk attitudes and psychological preference behaviors of decision-makers. Finally, to demonstrate the feasibility and effectiveness of the proposed method, a case study relates to select a sustainable 3PRLP in an electronic manufacturing company was conducted. The findings show that the company should pay more attention to the attributes related to social responsibility, service quality and cost when selecting alternative 3PRLP under the sustainable SCM environment. It also provides useful suggestions for 3PRLP themselves to improve their competitiveness from these aspects. Moreover, the sensitivity and comparative analysis demonstrated the necessity and superiorities of comprehensively considering weights of experts and attributes, adopting hybrid information formats, and taking into account the risk attitudes and psychological preference behaviors of decision-makers during the evaluation and selection process.