Selection of Reverse Logistics Operating Channels Through Integration of Fuzzy AHP and Fuzzy TOPSIS: A Pakistani Case

Abstract

In the emerging business environment, the organizations must promote alternative uses of resources that may be cost-effective and eco-friendly by extending products’ routine life cycles. In this perspective, an efficient management of product returns through reverse logistics operating channels is a strategic issue. Business organizations including those of automobile manufacturing industries would like to focus on their core competency areas and there is need of making outsourcing decisions of their reverse logistics operating channels. There are five operating channels of reverse logistics; Supplier Operation, Manufacturer Operation, Distributor Operation, Third Party Operation and Joint Operation. The objective of this work is to develop the multi-criteria group decision support system to assist the top management of the company in selection of reverse logistics operating channels through integration of analytical hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS) under fuzzy environment. An illustrative case is included to validate the proposed method. The key findings and managerial insights of present study also enables the logistics managers to better understand the complex relationships of the main attributes in the decision making environment and subsequently improve the reliability of the decision making process.