A Hybrid Fuzzy MCDM Approach for Sustainable Third-Party Reverse Logistics Provider Selection

Third-party reverse logistics providers(3PRLPs)selection has become an important logistics function which can help companies to maintain their competitive edge. Traditionally, companies solely considered economic aspects for selecting their 3PRLPs. However, due to increased pressure from different types of stakeholders regarding environmental and social issues in recent years, companies have been obliged to incorporate these issues in their logistics and supply chains functions. Although many studies have been conducted in the field of 3PRLPs selection, much less attention has been devoted to incorporating all three aspects of sustainability (social, environmental, and economic) in this field.In this research, a hybrid fuzzy multi-criteria decision-making (FMCDM) approach is proposed for selecting 3PRLPs while all three dimensions of sustainability were taken into account.Fuzzy analytic hierarchy process (FAHP)was used in order to weight the selected sustainability criteria and subcriteria. Then, fuzzy technique fororder preference by similarity to ideal solution (FTOPSIS)was applied for determining the ranking of suppliers. The applicability of the proposed approach wastested in an electronic manufacturing company.