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An optimization model for sustainable solutions towards implementation of reverse logistics under collaborative framework

Author

Listed:
  • Vernika Agarwal

    (University of Delhi)

  • Kannan Govindan

    (University of Southern Denmark)

  • Jyoti Dhingra Darbari

    (University of Delhi)

  • P. C. Jha

    (University of Delhi)

Abstract

Enforced Legislations, social image, corporate citizenship and market competence are forcing manufacturing enterprises (MEs) to incorporate reverse logistics (RL) into their supply chains. RL can be used as a strategic tool to gain customer loyalty and reduce operational costs by maximizing recovery from used products. MEs face many issues which hinder successful implementation of RL such as lack of government support, financial limitations, capabilities and facilities, and market constraints. The situation is worse in case of MEs in developing countries and hence the collaboration of all its stakeholders is essential for handling the issue. Some earlier studies focused on investigating these issues and their solutions from company’s perspective without considering the role of the channel partners . To overcome this gap, this study proposes a collaborative framework for MEs which includes identifying the sustainable solutions for implementation of RL, prioritizing the solutions as per their importance and designing and optimizing a RL network based on the most important solutions identified. Decision Making Trial and Evaluation Laboratory (DEMATEL) approach is employed to understand the mutual relationships among the solutions and extract the most imperative solutions. The paper presents a linear programming problem for the RL network developed under a collaborative framework which aims to maximize the total sustainable impact in the planning horizon. The focus of the study is to optimally utilize the profit accrued from the returned products to generate funds for the NGO and company employees. A numerical illustration of the Indian electronic and electrical industry is presented to validate the proposed study.

Suggested Citation

  • Vernika Agarwal & Kannan Govindan & Jyoti Dhingra Darbari & P. C. Jha, 2016. "An optimization model for sustainable solutions towards implementation of reverse logistics under collaborative framework," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 7(4), pages 480-487, December.
    • Handle: RePEc:spr:ijsaem:v:7:y:2016:i:4:d:10.1007_s13198-016-0486-3
    DOI: 10.1007/s13198-016-0486-3
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    References listed on IDEAS

    as
    1. Govindan, Kannan & Chaudhuri, Atanu, 2016. "Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 177-195.
    2. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.
    3. Davood Kiakojuri & Shahaboddin Shamshirband & Nor Anuar & Johari Abdullah, 2015. "Analysis of the social capital indicators by using DEMATEL approach: the case of Islamic Azad University," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(5), pages 1985-1995, September.
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    Cited by:

    1. Muhammad Hamza Naseem & Jiaqi Yang & Ziquan Xiang, 2021. "Prioritizing the Solutions to Reverse Logistics Barriers for the E-Commerce Industry in Pakistan Based on a Fuzzy AHP-TOPSIS Approach," Sustainability, MDPI, vol. 13(22), pages 1-20, November.
    2. Rui Ren & Wanjie Hu & Jianjun Dong & Bo Sun & Yicun Chen & Zhilong Chen, 2019. "A Systematic Literature Review of Green and Sustainable Logistics: Bibliometric Analysis, Research Trend and Knowledge Taxonomy," IJERPH, MDPI, vol. 17(1), pages 1-25, December.
    3. Kannan Govindan & Vernika Agarwal & Jyoti Dhingra Darbari & P. C. Jha, 2019. "An integrated decision making model for the selection of sustainable forward and reverse logistic providers," Annals of Operations Research, Springer, vol. 273(1), pages 607-650, February.
    4. Yongbo Li & Devika Kannan & P. C. Jha & Kiran Garg & Jyoti Darbari & Neha Agarwal, 2023. "Design of a multi echelon product recovery embeded reverse logistics network for multi products and multi periods," Annals of Operations Research, Springer, vol. 323(1), pages 131-152, April.
    5. Anshu Gupta & Pallavi Sharma & Akansha Jain & Hongbo Xue & S. C. Malik & P. C. Jha, 2023. "An integrated DEMATEL Six Sigma hybrid framework for manufacturing process improvement," Annals of Operations Research, Springer, vol. 322(2), pages 713-753, March.

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