Sustainable third-party reverse logistics provider selection to promote circular economy using new uncertain interval-valued intuitionistic fuzzy-projection model

Abstract

Purpose This study caries a survey approach using the expert's interview and literature to select the important criteria to select and evaluate the third-party reverse logistics providers (3PRLPs) in manufacturing companies. In total, 16 criteria are selected to evaluate 3PRLPs, and these criteria are classified on the basis of three main elements of sustainable growth, including economic, social and environmental development. Therefore, a hybrid decision-making approach is utilized to evaluate and rank the 3PRLPs in manufacturing companies. Design/methodology/approach This paper proposes a new decision-making approach using the projection model and entropy method under the interval-valued intuitionistic fuzzy set to assess 3PRLPs based on sustainability perspectives. A survey approach using the literature review and experts' interview is conducted to select the important criteria to select and evaluate 3PRLPs in manufacturing companies. To assess the criteria weight, the entropy method is used. Further, the projection model is applied to prioritize the 3PRLPs option. Sensitivity analysis and comparison process are performed in order to test and validate the developed method. Findings The presented methodology uses the benefits to determine the former for measuring the parameters considered and the latter for rating the 3PRLPs alternatives. A case study is taken to 3PRLPs in the manufacturing industry to illustrate the efficiency of the introduced hybrid method. The findings of this study indicate that when facing uncertainties of input and qualitative data, the proposed solution delivers more viable performance and therefore is suitable for wider uses. Originality/value The conception of the circular economy (CE) comes from the last 4 decades, and in recent years, tremendous attention has been carried out on this concept, partially because of the availability of natural resources in the world and changes in consumption behaviour of developed and developing nations. Remarkably, the sustainable supply chain management concepts are established parallel to the CE foundations, grown in industrial practice and ecology literature for a long time. In fact, to reduce the environmental concerns, sustainable supply chain management seeks to diminish the materials' flow and minimize the unintentional harmful consequences of consumption and production processes. Customers and governments are becoming increasingly aware of the environmental sustainability in the CE era, which allows businesses to concentrate more resources on reverse logistics (RLs). However, most manufacturing enterprises have been inspired to outsource their RL operations to competent 3PRLPs due to limited resources and technological limitations. In RL outsourcing practices, the selection of the best 3PRLP is helpfully valuable due to its potential to increase the economic viability of enterprises and boost their long-term growth.

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