Reaching sustainability through collection center selection considering risk: using the integration of Fuzzy ANP-TOPSIS and FMEA

Abstract

Companies collect their used products and use them again to enhance their environmental and social profiles besides obtaining profit from using them again in the forward flow. By adding collecting and handling products at the end of their lifecycle in the context of reverse logistics, companies create closed-loop supply chains. The processes of a network can be sustainably optimized by adjusting the performance of its different facilities regarding sustainability dimensions. In circumstances that there is more than one facility on a specific level, they can be prioritized by different means such as multi-criteria decision-making or risk assessment techniques. In evaluating facilities with each method, some criteria might not be addressed appropriately, so combining these methods can produce a satisfactory answer. In this study, the performance level of each collection center regarding the sustainability of their performance and the risk associated with their operations in a reverse steel supply chain is evaluated. For this aim, the Failure Mode and Effects Analysis, Fuzzy Analytic Network Process, and Fuzzy Technique for Order of Preference by Similarity to Ideal Solution have been integrated. The main contribution of this study is addressing the performance level of collection centers, as a vital facility in reverse logistics, from both operational and risk aspects considering sustainability dimensions. The applicability of the suggested methodology is demonstrated through its application in a steel manufacturer in the north of Iran, and the required sensitivity analyses are presented. Finally, managerial insights are discussed to enhance the performance of collection centers.