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An analytic network process-based multicriteria decision making model for a reverse supply chain

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Abstract

Reverse logistics has emerged as an important dimension for organizations to build their strategic advantage. Part of this effort relies on potentially outsourcing these activities. With this competitive issue in mind, this paper presents a multistep process to select a third-party reverse logistic provider (3PRLP). Criteria for evaluation are drawn from the literature and practical input from experts and decision makers within a case company. The process requires that an initial screening of criteria is completed through the analytical hierarchy process. The second stage of the process, 3PRLP selection, is completed using the analytic network process. An illustrative example is provided to demonstrate the solutions obtained by the proposed process within an automobile case company. A sensitivity analysis is also provided for a robustness check. The results obtained from the proposed model provide some interesting managerial implications to the case company and others wishing to apply the process.

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Correspondence to Kannan Govindan.

Appendix A

Appendix A

Greetings!

This is a research about “An analytic network process (ANP) based multicriteria decision making model for a reverse supply chain”. The purpose of this questionnaire is to explore the opinion about 3PRLP selection. This questionnaire uses ANP to model the 3PRLP selection. As an expert, your support will be very crucial to the successful completion of this research. We sincerely hope that you would spend some time to express your opinions to be taken as reference for this research.

1.1 Instructions for filling out the questionnaire

In order to express your opinion, the pairwise comparison scale proposed by Saaty (refer below table) can be utilized.

Saaty relative importance measurement scale [25, 26]

Preference weights/level of importance

Definition

Explanation

1

Equally preferred

Two activities contribute equally to the objective

3

Moderately

Experience and judgment slightly favor one activity over the other

5

Strongly

Experience and judgment strongly or essentially favor one activity over the other

7

Very strongly

An activity is strongly favored over the other and its dominance demonstrated in practice

9

Extremely

The evidence favoring one activity over the other is of the highest degree possibility affirmation

2,4,6,8

Intermediate values

Used to represent compromise between the preferences listed above

Reciprocals

Reciprocals for inverse comparisons

1.2 Method for filling out

Please mark (X) or circle the relative importance levels in terms of pairs of the main factors used in the study.

For example, we used the factors [competencies (CMP) and operational performance (OP)] to explain the method for filling out the questionnaire.

If you mark or circle “6” in the following question, means that “CMP” is six times more important than the “OP”

1

Competencies (CMP)

9

8

7

5

4

3

2

1

2

3

4

5

6

7

8

9

Operational performance (OP)

If you mark or circle “1” in the following question, means that “CMP” is equally preferred as “OP”

2

Competencies (CMP)

9

8

7

6

5

4

3

2

2

3

4

5

6

7

8

9

Operational performance (OP)

If you mark or circle “4” in the following question, means that “OP” is four times more important than the “CMP”

3

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

5

6

7

8

9

Operational performance (OP)

1.3 Sample question related to the main factors

Please mark (X) or circle the relative importance levels in terms of pairs of the main factors used in the study.

1

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Operational Performance (OP)

2

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Organization Role (OR)

3

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Technology Innovation (TI)

4

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Risk Management (RM)

5

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Financial Performance (FP)

6

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

User Satisfaction (US)

7

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Geographical Spread (GS)

8

Competencies (CMP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Network Size (N.S)

9

Operational performance (OP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Organization Role (OR)

10

Operational performance (OP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Technology Innovation (TI)

11

Operational performance (OP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Risk Management (RM)

12

Operational performance (OP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Financial Performance (FP)

13

Operational performance (OP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

User Satisfaction (US)

14

Operational performance (OP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Geographical Spread (GS)

15

Operational performance (OP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Network Size (N.S)

16

Organization role (OR)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Technology Innovation (TI)

17

Organization role (OR)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Risk Management (RM)

18

Organization role (OR)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Financial Performance (FP)

19

Organization role (OR)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

User Satisfaction (US)

20

Organization role (OR)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Geographical Spread (GS)

21

Organization role (OR)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Network Size (N.S)

22

Technology innovation (TI)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Risk Management (RM)

23

Technology Innovation (TI)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Financial Performance (FP)

24

Technology innovation (TI)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

User Satisfaction (US)

25

Technology innovation (TI)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Geographical Spread (GS)

26

Technology innovation (TI)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Network Size (N.S)

27

Risk management (RM)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Financial Performance (FP)

28

Risk management (RM)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

User Satisfaction (US)

29

Risk management (RM)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Geographical Spread (GS)

30

Risk management (RM)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Network Size (N.S)

31

Financial performance (FP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

User Satisfaction (US)

32

Financial performance (FP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Geographical Spread (GS)

33

Financial performance (FP)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Network Size (N.S)

34

User satisfaction (US)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Geographical Spread (GS)

35

User satisfaction (US)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Network Size (N.S)

36

Geographical spread (GS)

9

8

7

6

5

4

3

2

1

2

3

4

5

6

7

8

9

Network Size (N.S)

1.4 Sample question related to the alternatives

Please mark (X) or circle the relative importance levels in terms of pairs of the alternatives with respect to sub-factor “Quality management (QM)” under the main factor of “Competencies (CMP)” used in the study.

1

3PRLP1

9

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Govindan, K., Sarkis, J. & Palaniappan, M. An analytic network process-based multicriteria decision making model for a reverse supply chain. Int J Adv Manuf Technol 68, 863–880 (2013). https://doi.org/10.1007/s00170-013-4949-2

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