A Multi-criteria Decision-making Approach for Prioritizing Reverse Logistics Adoption Barriers under Fuzzy Environment: Case of Indian Electronics Industry

Abstract

Reverse logistics (RL) practices are gaining attention due to environmental and waste disposal issues, enforced law, rapidly changing technologies and corporate social concern. Reverse logistics has been seen as a part of sustainable development due to reduction in pollution by using a product again after the end of its life. The goal of this article is to evaluate and rank the barriers of RL implementation so that companies can design strategies to tackle them on a priority basis. This article proposes multi-criteria decision-making (MCDM) model based on fuzzy analytic hierarchy process (FAHP) to prioritize the barriers of RL adoption. The proposed approach is revealed by empirical case of Indian electronics industry. This proposed method considered fuzzy framework that can handle impreciseness and uncertainty easily. Totally, 38 barriers were identified through literature review and experts’ opinions. These barriers were classified into seven major criteria. The result of the study indicates that customer acuity about RL, lack of coordination/collaboration with third-party logistics (3PL) providers and uncertain quality and timing of return are the three most important barriers of RL adoption. Organizations should overcome these barriers on a priority basis for effective RL adoption. Finally, the robustness of the model is checked by sensitivity analysis.