Analysis and prioritisation of risks in a reverse logistics network using hybrid multi-criteria decision making methods

Abstract

Abstract Strict environmental regulations and diminishing raw material resources have strengthened the importance of reverse logistics at an increasing rate. However a substantial amount of risk is involved in the reverse supply chain which has to be managed by organisations effectively. The risks associated with reverse logistics have however not been addressed appropriately. In response to this knowledge gap, this study aims to prioritize the risks in reverse logistics Risk prioritisation is a multi-criteria decision making (MCDM) problem. In this work, risks involved in reverse logistics are prioritised using hybrid multi-criteria decision making methods. A case of plastic recycling firm is discussed for the illustration of the approach. The major contribution of this work lies in the development of linkages among the various functions in reverse logistics. The results indicate that managing inventory has a significant impact on reverse logistics. It was observed that social concern with respect to protecting the environment in general is based on the cooperation of customers. The findings of the study will provide useful insight to the supply chain managers and researchers for decision-making in reverse logistics.