A Decision Making Methodology for the Selection of Reverse Logistics Operating Channels

Abstract

An efficient management of product returns is a strategic issue. Nowadays, customer expect manufacturer to develop a reverse logistics system so that the returned products can be recovered. With the development and advancement of reverse logistics practice, the selection of reverse logistics operating channels becomes more important. There are three operating channels of reverse logistics; Manufacturer Operation, Third Party Operation, Joint Operation. In this paper a hybrid methodology based on Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) under fuzzy environment is proposed for the selection and evaluation of reverse logistics operating channels. An example is included to validate the proposed method. This method helps the decision maker to select the best technology that meets the requirement.

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