Multi-criteria decision approach for a sustainable reverse logistics network under fuzzy environment

Abstract

Adoption of reverse logistics practices in existing supply chains has emerged as an important incentive for manufacturers to gain financial and competitive advantage. Growing environmental and social concerns are driving firms to incorporate sustainable strategies into designing of their reverse supply chain (RSC) network. A sustainable RSC can be attained by following the triple bottom line (TBL) philosophy i.e. economical, social and environmental development. In this paper, we develop a sustainable reverse logistics model for laptop manufacturers for handling of end-of-life (EOL) and end-of-use (EOU) product returns. In the first stage of the model, a hybrid method using Analytical Hierarchy Process (AHP) and the Fuzzy Technique for Order Preference by Similarity to Ideal Solutions (TOPSIS) based on the criteria of TBL is applied to calculate weights for the three dimensions of sustainability. In the second stage, a three objective mixed integer linear programming model is developed in fuzzy environment which minimises the total cost, the environmental impact (in terms of CO 2 e emissions) and maximises the social impact of the network utilising the weights of the objectives from the first stage. The social sustainability is tacked in the model by the management of social resources including training for the workers, fixed jobs as well as inclusion of variable jobs based on the quantity of returns. The model is validated through a case study and its societal, economical and environmental impact is discussed.