An Analytic Network Process-based Multicriteria Decision Making Model for a Reverse Supply Chain

Kannan Govindan, Joseph Sarkis, and Murugesan Palaniappan

International Journal of Advanced Manufacturing Technology, Forthcoming.

Reverse logistics has emerged as an important dimension for organizations to build their strategic advantage. Part of this effort relies on potentially outsourcing these activities. With this competitive issue in mind, this paper presents a multistep process to select a third-party reverse logistic provider (3PRLP). Criteria for evaluation are drawn from the literature and practical input from experts and decision makers within a case company. The process requires that an initial screening of criteria is completed through the analytical hierarchy process. The second stage of the process, 3PRLP selection, is completed using the analytic network process. An illustrative example is provided to demonstrate the solutions obtained by the proposed process within an automobile case company. A sensitivity analysis is also provided for a robustness check. The results obtained from the proposed model provide some interesting managerial implications to the case company and others wishing to apply the process.

Keywords: Supply Chain Management; Analytical Network Process; Analytical Hierarchy Process; AHP; ANP; Reverse Logistics; Green Supply Chain Management

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