SELECTION OF REVERSE LOGISTICS SERVICE PROVIDER (RLSP) USING ANALYTICAL NETWORK PROCESS (ANP): A CASE STUDY OF AN AUTOMOTIVE COMPANY

Abstract

<p>Activities in reverse logistics implementation are practiced extensively by lead acid battery manufacturing industries. One important problem faced by the management in the battery manufacturing industry is the regular supply of spent batteries/ lead from the end users in the supply chain management of battery production. The Analytic Network Process (ANP) based decision model presented in this work structures the problem related to options in selection of a reverse logistics service provider for supply of EOL lead acid batteries in a hierarchical form and links the determinants, dimensions, and enablers of the reverse logistics service provider with alternatives available to the decision maker. A reverse logistics service provider evaluation problem has been formulated that includes two primary tasks: preliminary screening of the RL service providers by a team of managers and an Analytic Network Process (ANP) based model for final selection. The proposed approach, therefore, links the financial and non-financial, tangible and intangible, internal and external factors, thus providing a holistic framework for the selection of an alternative for the reverse logistics operations for EOL batteries. The results of the present work indicate that acceptable cost between the user and the RL service provider companies is the most important determinant which influences the final selection process. This approach also enables the decision-makers to better understand the complex relationships of the relevant attributes in the decision making which may subsequently improve the reliability of the decision.</p>