Skip to main content
Log in

A conceptual analytic network model for evaluating and selecting third-party reverse logistics providers

  • ORIGINAL ARTICLE
  • Published:
The International Journal of Advanced Manufacturing Technology Aims and scope Submit manuscript

Abstract

Although the success of forward logistics depends on the performance of reverse logistics, some manufacturing companies are not able to manage their reverse logistics effectively and thus delegate this important process to third-party reverse logistics providers (3PRLPs). In such cases, the decision to evaluate and select an appropriate 3PRLP becomes highly significant. In this paper, we use the analytic network process (ANP) and propose an analytical framework to systematically model the complex nature of interactions among the selection factors. In this model, the factors determining the evaluation of 3PRLPs are initially valued using Likert scale questionnaires. Then, a screening process is implemented using the average alternative method. Finally, the factors selected are structured in a network framework following the ANP. We present a case study to demonstrate the applicability of the proposed framework and exhibit the efficacy of the procedures and algorithms. The results have important managerial implications for production managers and illustrate that, in our case study, quality is the most important factor when selecting a 3PRLP.

Product life cycle and reverse logistics

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  1. Andersson D, Norrman A (2002) Procurement of logistics service-a minutes work or a multiyear project? Europ J Purchas Suppl Manag 8(1):3–14

    Article  Google Scholar 

  2. Autry CW, Daugherty PJ, Richey RG (2001) The challenge of reverse logistics in catalog retailing. Int J Phys Distrib Logistics Manag 31(1):26–37

    Article  Google Scholar 

  3. Bowersox DJ, Closs DJ (1996) Logistical management: the integrated supply chain process. International Editions, McGraw-Hall

    Google Scholar 

  4. Boyson S, Corsi T, Dresner M, Rabinovich E (1999) Managing third party logistics relationships: what does it take. J Bus Logist 20(1):73–100

    Google Scholar 

  5. Chopra S, Meindl P (2012) Supply chain management: strategy, planning and operation. Prentice Hall

  6. Croom S, Romano P, Giannakis M (2000) Supply chain management: an analytical framework for critical literature review. Europ J Purchas Suppl Manag 6(1):67–83

    Article  Google Scholar 

  7. Dat LQ, TrucLinh DT, Chou SY, Yu VF (2012) Optimizing reverse logistic costs for recycling end-of-life electrical and electronic products. Expert Syst Applic 39(7):6380–6387

    Article  Google Scholar 

  8. Daugherty PJ, Autry CW, Ellinger AE (2001) Reverse logistics: the relationship between resource commitment and program performance. J Bus Logist 22(1):107–123

    Article  Google Scholar 

  9. Daugherty PJ, Glenn Richey R, Genchev SE, Chen H (2005) Reverse logistics: superior performance through focused resource commitments to information technology. Transport Res E: Logist Transport View 41(2):77–92

    Article  Google Scholar 

  10. Davis RA, Gaither N (1985) Optimal ordering policies under conditions of extended payment privileges. Manag Sci 31:499–509

    Article  MATH  Google Scholar 

  11. Demir I, Orhan M (2003) Reuse of waste bricks in the production line. Build Environ 38:1451–1455

    Article  Google Scholar 

  12. Dowlatshahi S (2000) Developing a theory of reverse logistics. Interfaces 30(3):143–155

    Article  Google Scholar 

  13. Efendigil T, Önüt S, Kongar E (2008) A holistic approach for selecting a third-party reverse logistics provider in the presence of vagueness. Comput Ind Eng 54(2):269–287

    Article  Google Scholar 

  14. El-Ansary AI (1974) Societal marketing: a strategic view of the marketing mix in the1970’s. J Acad Mark Sci 2(4):553–566

    Article  Google Scholar 

  15. Farzipoor SR (2010) A new model for selecting third-party reverse logistics providers in the presence of multiple dual-role factors. Technology. Int J Adv Manuf Technol 46(1–4):405–410

  16. Gay C, Essinger J (2000) Inside outsourcing. Nicholas Brealey, Naperville

    Google Scholar 

  17. Govindan K, Palaniappan M, Zhu Q, Kannan D (2012) Analysis of third party reverse logistics provider using interpretive structural modeling. Int J Prod Econ 140(1):204–211

    Article  Google Scholar 

  18. Govindan K, Sarkis J, Palaniappan M (2013) An analytic network process-based multicriteria decision making model for a reverse supply chain. Int J Adv Manuf Technol 68(1–4):863–880

    Article  Google Scholar 

  19. Gunasekaran A, Patel C, Tirtiroglu E (2001) Performance measures and metrics in a supply chain environment. Int J Opera Product Manag 21(1/2):71–87

    Article  Google Scholar 

  20. Gupta YP, Bagchi PK (1987) Inbound freight consolidation under just-in-time procurement: application of clearing models. J Bus Logist 8(2):74–94

    Google Scholar 

  21. Handfield RB, Nichols EL (1999) Introduction to supply chain management (vol. 1). Prentice Hall, Upper Saddle River

    Google Scholar 

  22. Haq AN, Kannan G (2006) Fuzzy analytical hierarchy process for evaluating and selecting a vendor in a supply chain model. Int J Adv Manuf Technol 29(7–8):826–835

    Google Scholar 

  23. Hendrik J, Matthias Z, Marco F, Joachim K (2006) Performance evaluation as an influence factor for the determination of profit shares of competence cells in non-hierarchical regional production networks. Robot Comput Integr Manuf 22:526–535

    Article  Google Scholar 

  24. Holguin-Veras J (2002) Revealed preference analysis of the commercial vehicle choice process. J Transp Eng 128(4):336–346

    Article  Google Scholar 

  25. Jing AL, Wu Y, Kin KL, Liu K (2006) Optimal ordering policy in a distribution system. Int J Prod Econ 103:527–534

    Article  Google Scholar 

  26. Kaliampakos DC, Benardos AG, Mavrikos AA (2002) Underground storage warehouses in Attica, Greece: a feasible long-term solution. In Proceedings, 9th International Conference, Urban Underground Space: a Resource for Cities, November pp. 14–16

  27. Kannan G, Murugesan P (2011) Selection of third party reverse logistics provider using fuzzy extent analysis. Benchmark: Int J 18(1):149–167

    Article  Google Scholar 

  28. Kim MK, Park MC, Jeong DH (2004) The effects of customer satisfaction and switching barrier on customer loyalty in Korean mobile telecommunication services. Telecommun Policy 28(2):145–159

  29. Kleinsorge IK, Schary PB, Tanner RD (1991) The shipper-carrier partnership: a new tool for performance evaluation. J Bus Logist 12(2):35–58

    Google Scholar 

  30. Kwang JK, Jeong IJ, Park JC, Park YJ, Kim CG, Kim TH (2007) The impact on network service performance on customer satisfaction and loyalty: high-speed internet service case in Korea. Expert Syst Applic 32:822–831

    Article  Google Scholar 

  31. Lee JE, Gen M, Rhee KG (2009) Network model and optimization of reverse logistics by hybrid genetic algorithm. Comput Ind Eng 56(3):951–964

    Article  Google Scholar 

  32. Lin YH, Tsai KM, Shiang WJ, Kuo TC, Tsai CH (2009) Research on using ANP to establish a performance assessment model for business intelligence systems. Expert Syst Applic 36(2):4135–4146

    Article  Google Scholar 

  33. Lynch CF (2000) Logistics outsourcing: a management guide. Council of Logistics Management Publications, Illinois

    Google Scholar 

  34. Meade L, Sarkis J (2002) A conceptual model for selecting and evaluating third-party reverse logistics providers. Suppl Chain Manag: Int J 7(5):283–295

    Article  Google Scholar 

  35. Meng XR (2008) Study of evaluation and selection on third party reverse logistics providers. Proc Int Seminar Bus Inform Manag 518–521

  36. Mirakhorli A (2014) Fuzzy multi-objective optimization for closed loop logistics network design in bread-producing industries. Int J Adv Manufac Technol 1–14

  37. Mohr J, Spekman R (1994) Characteristics of partnership success: partnership attributes, communication behavior, and conflict resolution techniques. Strateg Manag J 15(2):135–152

    Article  Google Scholar 

  38. Nikoofal ME, MoattarHusseini SM (2010) An inventory model with dependent returns and disposal cost. Int J Ind Eng Comput 1(1):45–54

    Google Scholar 

  39. Ordoobadi SM (2009) Outsourcing reverse logistics and remanufacturing functions: a conceptual strategic model. Manag Res News 32(9):831–845

    Article  Google Scholar 

  40. Pickering SJ (2006) Recycling technologies for thermoset composite materials—current status. Compos A: Appl Sci Manuf 37(8):1206–1215

    Article  Google Scholar 

  41. Pishvaee MS, Torabi SA, Razmi J (2012) Credibility-based fuzzy mathematical programming model for green logistics design under uncertainty. Comput Ind Eng 62(2):624–632

    Article  Google Scholar 

  42. Reza K, Vassilis SM (1988) Delphi hierarchy process (DHP): a methodology for priority setting derived from the delphi method and analytical hierarchy process. Eur J Oper Res 137:347–354

    MATH  Google Scholar 

  43. Ritchie L, Burnes B, Whittle P, Hey R (2000) The benefits of reverse logistics: the case of the Manchester Royal Infirmary Pharmacy. Suppl Chain Manag: Int J 5(5):226–234

    Article  Google Scholar 

  44. Rogers DS, Tibben-Lembke RS (1999) Going backwards: reverse logistics trends and practices. vol. 2. Reverse Logistics Executive Council, Pittsburgh

    Google Scholar 

  45. Roper-Lowe GC, Sharp JA (1990) The analytic hierarchy process and its application to an information technology decision. J Opera Res Soc 49–59

  46. Saaty TL (1986) Axiomatic foundation of the analytic hierarchy process. Manag Sci 32:841–845

    Article  MathSciNet  MATH  Google Scholar 

  47. Saaty TL (2000) Fundamentals of decision making and priority theory. RWS Publications, Pittsburgh

    Google Scholar 

  48. Saaty TL (2001) Decision making with dependence and feedback: the analytic network process. RWS Publications, Pittsburgh

    Google Scholar 

  49. Saaty TL (2005) Theory and applications of the analytic network process: decision making with benefits, opportunities, costs, and risks. RWS Publications, Pittsburgh

    Google Scholar 

  50. Saaty TL, Özdemir MS (2005) The encyclicon: a dictionary of applications of decision making with dependence and feedback based on the analytic network process. RWS Publications

  51. Saaty TL, Vargas LG (2006) Decision making with the analytic network process. Springer Science+ Business Media, LLC

  52. Sahay BS, Mohan R (2006) Third-party logistics practices: an Indian perspective. Int J Phys Distrib Logist Manag 36(9):66–89

    Article  Google Scholar 

  53. Schwartz B (2000) Reverse logistics strengthens supply chain. Transp Distrib 41(5):95–100

    Google Scholar 

  54. Senthil S, Srirangacharyulu B, Ramesh A (2014) A robust hybrid multi-criteria decision making methodology for contractor evaluation and selection in third-party reverse logistics. Expert Syst Applic 41(1):50–58

    Article  Google Scholar 

  55. Stock ON, Oreis NP, Kasarda JD (1998) Logistics strategy and structure a conceptual framework. Int J Opera Product Manag 18(1):37–52

    Article  Google Scholar 

  56. Tabachnick BG, Fidell LS (2001) Using multivariate statistics. Allyn & Bacon, Boston

    Google Scholar 

  57. Tibben-Lembke RS (2002) Life after death: reverse logistics and the product life cycle. Int J Phys Distrib Logist Manag 32(3):223–244

    Article  Google Scholar 

  58. Van Dijck JJ (1990) Transitional management in an evolving European context. Eur Manag J 8(4):474–479

  59. Van JP, Zijm WHM (1999) Models for warehouse management: classification and examples. Int J Prod Econ 59:519–528

    Article  Google Scholar 

  60. Wei J, Zhao J (2011) Pricing decisions with retail competition in a fuzzy closed-loop supply chain. Expert Syst Applic 38(9):11209–11216

    Article  Google Scholar 

  61. Xu ZS, Liao HC (2014) Intuitionistic fuzzy analytic hierarchy process. IEEE Trans Fuzzy Syst. doi:10.1109/TFUZZ.2013.2272585

    Google Scholar 

  62. Yazdian S, Shahanaghi K (2011) A multi-objective possibilistic programming approach for locating distribution centers and allocating customers demands in supply chains. Int J Ind Eng Comput 2(1):193–202

    Google Scholar 

  63. Yin ZH, Lu Q (2009) The Grey comprehensive evaluation models of a third party reverse logistics provider selection. Proc Int Joint Conf Artif Intell 497–500

  64. Zareinejad M, Javanmard H (2013) Evaluation and selection of a third-party reverse logistics provider using ANP and IFG-MCDM methodology. Life Sci J 10(6s):350–355

    Google Scholar 

  65. Zikmund WG, Stanton WJ (1971) Recycling solid wastes: a channels-ofdistribution problem. J Mark 35(3):34–39

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Madjid Tavana.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Tavana, M., Zareinejad, M., Santos-Arteaga, F.J. et al. A conceptual analytic network model for evaluating and selecting third-party reverse logistics providers. Int J Adv Manuf Technol 86, 1705–1721 (2016). https://doi.org/10.1007/s00170-015-8208-6

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00170-015-8208-6

Keywords

Navigation