A decision-making framework for the selection of third-party reverse logistics provider Online publication date: Tue, 01-Jun-2010
by P. Murugesan, A. Noorul Haq
International Journal of Services, Economics and Management (IJSEM), Vol. 2, No. 3/4, 2010
Abstract: Outsourcing has provided many third-party providers with a unique opportunity to enter the reverse logistics market. The selection of partners for the specific function of reverse logistics support becomes more important. This paper proposes a structured model for evaluating and selecting Third-Party Reverse Logistics Provider (3PRLP) by considering factors such as Third-Party Logistics (3PL) services, organisational performance criteria, organisational role, reverse logistics functions, IT applications, user satisfaction and impact of use of 3PL and their respective sub-factors using the Analytic Hierarchy Process (AHP) and Fuzzy Analytic Hierarchy Process (FAHP). A usability evaluation of the AHP-based model with four 3PRLPs is discussed. The effectiveness of the AHP and FAHP models is illustrated using a company in southern part of India.
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