A new chance-constrained data envelopment analysis for selecting third-party reverse logistics providers in the existence of dual-role factors

Authors:
Majid Azadi;Reza Farzipoor Saen
Affiliations:
Faculty of Economics and Management, Islamic Azad University - Science and Research Branch, Tehran, Iran;Department of Industrial Management, Faculty of Management and Accounting, Islamic Azad University - Karaj Branch, P.O. BoxNo. 31485-313, Karaj, Iran
Venue:
Expert Systems with Applications: An International Journal
Year:
2011

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Abstract

Outsourcing in logistics is a very significant theme and third-party reverse logistics (3PL) provider evaluation and selection has to be realized in a careful manner in order to provide the expected benefits. In this paper a new chance-constrained data envelopment analysis (CCDEA) approach is proposed to assist the decision makers to determine the most appropriate third-party reverse logistics (3PL) providers in the presence of both dual-role factors and stochastic data. A numerical example demonstrates the application of the proposed model.