An integrated intuitionistic fuzzy AHP and SWOT method for outsourcing reverse logistics

We consider the problem faced by a company that must outsource reverse logistics (RL) activities to third-party providers. Addressing RL outsourcing problems has become increasingly relevant issue in the management science and decision making literatures. The correct evaluation and ranking of the decision criteria/priorities determining the selection of the best third-party RL providers (3PRLPs) is essential for the competitive performance of the outsourcing company. The method proposed in this study allows to identify and classify these decision criteria. First, the relevant criteria and sub-criteria are identified using a SWOT analysis. Then, Intuitionistic Fuzzy AHP is used to evaluate the relative importance weights among the criteria and the corresponding sub-criteria. These relative weights are implemented in a novel extension of Mikhailov's fuzzy preference programming method to produce local weights for all criteria and sub-criteria. Finally, these local weights are used to assign a global weight to each sub-criterion and create a ranking. We discuss the results obtained by applying the proposed model to a case study of a real company. In particular, these results show that the most important priority for the company when delegating RL activities to 3PRLPs is to focus on the core business, while reducing costs constitutes one of its least important priorities. (C) 2015 Elsevier B.V. All rights reserved.