A fuzzy TOPSIS method for performance evaluation of reverse logistics in social commerce platforms

Abstract Reverse logistics initiatives with social commerce not only provide opportunities for firms to create new sources of revenue but also demonstrate their corporate social responsibility via social, green, and environmental activities. Thus, a growing number of companies are attempting to streamline their social commerce platforms to effectively handle reverse logistics. The purpose of this study is to identify the criteria that should be used in designing and evaluating social commerce based reverse logistics processes by firms. We tested the effectiveness of the identified criteria by using them to evaluate the reverse logistics practices of three major global firms that use social commerce platforms. First, we identified the criteria from a thorough review of the literature. Then, we invited five experts to provide (linguistic) ratings of these firms on the selected criteria, using a fuzzy Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) technique with FLINTSTONES (a software tool) to generate aggregate scores for the assessment and evaluation of reverse logistics practices in social commerce platforms. Sensitivity analysis was also provided to monitor the robustness of the approach. The results of the study identified that four dominant criteria (reverse logistics performance indicators) in the social commerce platform: Customer relationship, Usage risk, Reviews, and Quality control.

[1]  Shih-Ping Jeng,et al.  Increasing customer purchase intention through product return policies: The pivotal impacts of retailer brand familiarity and product categories , 2017 .

[2]  Keeheon Lee,et al.  Agent-based diffusion model for an automobile market with fuzzy TOPSIS-based product adoption process , 2011, Expert Syst. Appl..

[3]  Yili Hong,et al.  Product Fit Uncertainty in Online Markets: Nature, Effects and Antecedents , 2014, Inf. Syst. Res..

[4]  Robert LIN,et al.  NOTE ON FUZZY SETS , 2014 .

[5]  Hui Chen,et al.  A Pseudo-Parallel Genetic Algorithm Integrating Simulated Annealing for Stochastic Location-Inventory-Routing Problem with Consideration of Returns in E-Commerce , 2015 .

[6]  Macarena Espinilla,et al.  On the use of Hesitant Fuzzy Linguistic Term Set in FLINTSTONES , 2014, 2014 IEEE International Conference on Fuzzy Systems (FUZZ-IEEE).

[7]  Luis Martínez-López,et al.  A Hesitant Linguistic Fuzzy TOPSIS Approach Integrated into FLINTSTONES , 2015, IFSA-EUSFLAT.

[8]  Hwai-En Tseng,et al.  Fuzzy Topsis Decision Method for Configuration Management , 2008 .

[9]  Norzima Zulkifli,et al.  A hybrid model for remanufacturing facility location problem in a closed-loop supply chain , 2011 .

[10]  Marina Bosch,et al.  Fuzzy Multiple Attribute Decision Making Methods And Applications , 2016 .

[11]  R. K. Singh,et al.  A fuzzy TOPSIS based approach for e-sourcing , 2011, Eng. Appl. Artif. Intell..

[12]  Anjali Awasthi,et al.  A fuzzy multicriteria approach for evaluating environmental performance of suppliers , 2010 .

[13]  Miao Wang,et al.  Review of the Research on the Impact of Online Shopping Return Policy on Consumer Behavior , 2017 .

[14]  Ching-Lai Hwang,et al.  Multiple Attribute Decision Making: Methods and Applications - A State-of-the-Art Survey , 1981, Lecture Notes in Economics and Mathematical Systems.

[15]  Santoso Wibowo,et al.  A fuzzy multicriteria approach for evaluating the sustainability performance of semiconductor companies , 2013, 2013 IEEE 8th Conference on Industrial Electronics and Applications (ICIEA).

[16]  Radoslav Škapa,et al.  Reverse logistics in Czech companies: increasing interest in performance measurement , 2012 .

[17]  R. Singh,et al.  Prioritizing critical success factors for reverse logistics implementation using fuzzy-TOPSIS methodology , 2016 .

[18]  Renuka Nagpal,et al.  Rank University Websites Using Fuzzy AHP and Fuzzy TOPSIS Approach on Usability , 2015 .

[19]  Eva Ponce Cueto,et al.  FORMALIZATION OF REVERSE LOGISTICS PROGRAMS: A THEORETICAL FRAMEWORK , 2016 .

[20]  Hokey Min,et al.  A Reverse Logistics Network Model for Handling Returned Products , 2014 .

[21]  Hui Han,et al.  Social Commerce Design: A Framework and Application , 2017, J. Theor. Appl. Electron. Commer. Res..

[22]  Pei-Ling Hsieh,et al.  Perceived opportunism (PO) in e‐return service encounters , 2013 .

[23]  Madjid Tavana,et al.  An Integrated Intuitionistic Fuzzy AHP and SWOT Method for Outsourcing Reverse Logistics Highlights , 2015 .

[24]  Anjali Awasthi,et al.  Application of fuzzy TOPSIS in evaluating sustainable transportation systems , 2011, Expert Syst. Appl..

[25]  Nesrin Alptekin,et al.  Ranking Determinants on Quality of Online Shopping Websites Using Integrated Entropy and TOPSIS Methods , 2015 .

[26]  Hayri Baraçli,et al.  A customer satisfaction model based on fuzzy TOPSIS and SERVQUAL methods , 2013 .

[27]  Hossein Safari,et al.  A Fuzzy TOPSIS Approach for Ranking of Supplier: A Case Study of ABZARSAZI Company , 2014 .

[28]  Ji-Feng Ding,et al.  An Integrated Fuzzy TOPSIS Method for Ranking Alternatives and Its Application , 2011 .

[29]  Ravi Kant,et al.  A fuzzy AHP-TOPSIS framework for ranking the solutions of Knowledge Management adoption in Supply Chain to overcome its barriers , 2014, Expert Syst. Appl..

[30]  Morteza Yazdani,et al.  A state-of the-art survey of TOPSIS applications , 2012, Expert Syst. Appl..

[31]  Jung-Tang Hsueh,et al.  Constructing a network model to rank the optimal strategy for implementing the sorting process in reverse logistics: case study of photovoltaic industry , 2014, Clean Technologies and Environmental Policy.

[32]  Jamil Ahmad,et al.  A Fuzzy AHP-TOPSIS Framework for the Risk Assessment of Green Supply Chain Implementation in the Textile Industry , 2015 .

[33]  Cengiz Kahraman,et al.  Fuzzy multicriteria disposal method and site selection for municipal solid waste. , 2010, Waste management.

[34]  Ivan Russo,et al.  Understanding the Impact of Return Policy Leniency on Consumer Purchase, Repurchase, and Return Intentions: A Comparison Between Online and Offline Contexts: An Abstract , 2017 .

[35]  Mohana Shanmugam,et al.  Social commerce from the Information Systems perspective: A systematic literature review , 2014, 2014 International Conference on Computer and Information Sciences (ICCOINS).

[36]  Bailing Liu,et al.  A Two-Stage Algorithm for the Closed-Loop Location-Inventory Problem Model Considering Returns in E-Commerce , 2014 .

[37]  Selim Zaim,et al.  Analyzing business competition by using fuzzy TOPSIS method: An example of Turkish domestic airline industry , 2011, Expert Syst. Appl..

[38]  Charbel José Chiappetta Jabbour,et al.  Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company , 2014, Eur. J. Oper. Res..

[39]  Dimitris Askounis,et al.  Support managers' selection using an extension of fuzzy TOPSIS , 2011, Expert Syst. Appl..

[40]  Chia-Chi Sun,et al.  A performance evaluation model by integrating fuzzy AHP and fuzzy TOPSIS methods , 2010, Expert Syst. Appl..

[41]  Ronald S. Tibben-Lembke,et al.  Going Backwards: Reverse Logistics Trends and Practices , 1999 .

[42]  Gülçin Büyüközkan,et al.  A novel hybrid MCDM approach based on fuzzy DEMATEL, fuzzy ANP and fuzzy TOPSIS to evaluate green suppliers , 2012, Expert Syst. Appl..

[43]  S. P. Sivapirakasam,et al.  Multi-attribute decision making for green electrical discharge machining , 2011, Expert Syst. Appl..

[44]  Saumya Dixit,et al.  Towards improved understanding of reverse logistics – Examining mediating role of return intention , 2016 .

[45]  Benjamin T. Hazen,et al.  Reverse logistics in Malaysia: The Contingent role of institutional pressure , 2015 .

[46]  C. Hwang Multiple Objective Decision Making - Methods and Applications: A State-of-the-Art Survey , 1979 .

[47]  Anjali Awasthi,et al.  A hybrid approach based on SERVQUAL and fuzzy TOPSIS for evaluating transportation service quality , 2011, Comput. Ind. Eng..

[48]  Mahdi Shadkam,et al.  Social Commerce Dimensions: The Potential Leverage for Marketers , 2013 .

[49]  Ching-Lai Hwang,et al.  Fuzzy Multiple Attribute Decision Making - Methods and Applications , 1992, Lecture Notes in Economics and Mathematical Systems.

[50]  Jan Kemper,et al.  How Online Customer Reviews Affect Sales and Return Behavior - an Empirical Analysis in Fashion E-Commerce , 2017, ECIS.

[51]  Morteza Pakdin Amiri,et al.  Project selection for oil-fields development by using the AHP and fuzzy TOPSIS methods , 2010, Expert Syst. Appl..

[52]  Francisco Rodrigues Lima-Junior,et al.  Combining SCOR® model and fuzzy TOPSIS for supplier evaluation and management , 2016 .

[53]  Shaligram Pokharel,et al.  A hybrid approach using ISM and fuzzy TOPSIS for the selection of reverse logistics provider , 2009 .

[54]  Chen-Tung Chen,et al.  An Evaluation Model of E-service Quality by Applying Hierarchical Fuzzy TOPSIS Method , 2012, Int. J. Electron. Bus. Manag..

[55]  Lili Yang,et al.  Information flow in reverse logistics: an industrial information integration study , 2012, Inf. Technol. Manag..

[56]  Hsing-Pei Kao,et al.  An integrated fuzzy TOPSIS and MCGP approach to supplier selection in supply chain management , 2011, Expert Syst. Appl..