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An integrated decision making model for the selection of sustainable forward and reverse logistic providers

Author

Listed:
  • Kannan Govindan

    (University of Southern Denmark)

  • Vernika Agarwal

    (University of Delhi)

  • Jyoti Dhingra Darbari

    (University of Delhi)

  • P. C. Jha

    (University of Delhi)

Abstract

Due to rising concerns for environmental sustainability, the Indian electronic industry faces immense pressure to incorporate effective sustainable practices into the supply chain (SC) planning. Consequently, manufacturing enterprises (ME) are exploring the option of re-examining their SC strategies and taking a formalized approach towards a sustainable partnership with logistics providers. To begin with, it is imperative to associate with sustainable forward and reverse logistics providers to manage effectively the upward and downstream flows simultaneously. In this context, this paper proposes an integrated SC network for the evaluation and selection of forward distribution partners (FDP) and third party reverse logistic providers (3PRLP) from a sustainable perspective of an Indian electronic ME. The sustainable evaluation of the logistic partners is performed using fuzzy analytic hierarchy process and the technique for order performance by similarity to ideal solution. The integrated logistics network is modeled as a bi-objective mixed-integer programming problem with the objective of maximizing the profit of the manufacturer and maximizing the sustainable score of the selected forward and reverse logistics providers. The novelty of the study is its ranking of the FDPs and 3PRLPs on the economic, environmental, and social dimensions of sustainability and the simultaneous integration of logistics outsourcing decisions for the forward and reverse flow of products. Goal programming approach is utilized to capture the trade-off between the conflicting objectives and to attain a satisfying solution to the bi-objective problem. The results indicate that integrating the strategic decisions of selection of logistics partners with the operational flow planning decisions can immensely improve the sustainable performance value of the SC network and secure reasonable profits. The managerial implications drawn from the result analysis provide a sustainable framework to the ME for enhancing its corporate image.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:annopr:v:273:y:2019:i:1:d:10.1007_s10479-017-2654-5
    DOI: 10.1007/s10479-017-2654-5
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    2. Mitali Sarkar & Sungjun Kim & Jihed Jemai & Baishakhi Ganguly & Biswajit Sarkar, 2019. "An Application of Time-Dependent Holding Costs and System Reliability in a Multi-Item Sustainable Economic Energy Efficient Reliable Manufacturing System," Energies, MDPI, vol. 12(15), pages 1-19, July.
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    4. Yanfen Mu & Feng Niu, 2022. "To Be or Not to Be? Strategic Analysis of Carbon Tax Guiding Manufacturers to Choose Low-Carbon Technology," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    5. Ahmed Dabees & Mahmoud Barakat & Sahar Sobhy Elbarky & Andrej Lisec, 2023. "A Framework for Adopting a Sustainable Reverse Logistics Service Quality for Reverse Logistics Service Providers: A Systematic Literature Review," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    6. Chukwuebuka M. U-Dominic & Ifeyinwa Juliet Orji & Modestus Okwu, 2021. "Analyzing the Barriers to Reverse Logistics (RL) Implementation: A Hybrid Model Based on IF-DEMATEL-EDAS," Sustainability, MDPI, vol. 13(19), pages 1-24, September.
    7. Sadia Samar Ali & Rajbir Kaur & Shahbaz Khan, 2023. "Evaluating sustainability initiatives in warehouse for measuring sustainability performance: an emerging economy perspective," Annals of Operations Research, Springer, vol. 324(1), pages 461-500, May.
    8. Marcin Relich, 2023. "A Data-Driven Approach for Improving Sustainable Product Development," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    9. Navid Zarbakhshnia & Kannan Govindan & Devika Kannan & Mark Goh, 2023. "Outsourcing logistics operations in circular economy towards to sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 134-162, January.
    10. Seyyed-Mahdi Hosseini-Motlagh & Mona Jazinaninejad & Nazanin Nami, 2023. "Recall management in pharmaceutical industry through supply chain coordination," Annals of Operations Research, Springer, vol. 324(1), pages 1183-1221, May.
    11. Mohamed Rafik Noor Mohamed Qureshi, 2022. "A Bibliometric Analysis of Third-Party Logistics Services Providers (3PLSP) Selection for Supply Chain Strategic Advantage," Sustainability, MDPI, vol. 14(19), pages 1-25, September.
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    13. Sadia Samar Ali & Rajbir Kaur & D. Jinil Persis & Raiswa Saha & Murugan Pattusamy & V. Raja Sreedharan, 2023. "Developing a hybrid evaluation approach for the low carbon performance on sustainable manufacturing environment," Annals of Operations Research, Springer, vol. 324(1), pages 249-281, May.
    14. Monrudee Theeraworawit & Suparak Suriyankietkaew & Philip Hallinger, 2022. "Sustainable Supply Chain Management in a Circular Economy: A Bibliometric Review," Sustainability, MDPI, vol. 14(15), pages 1-21, July.
    15. Seyed Hossein Razavi Hajiagha & Jalil Heidary-Dahooie & Ieva Meidutė-Kavaliauskienė & Kannan Govindan, 2022. "A new dynamic multi-attribute decision making method based on Markov chain and linear assignment," Annals of Operations Research, Springer, vol. 315(1), pages 159-191, August.

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