Flexibility in reverse logistics: a framework and evaluation approach

Reverse logistics (or the reverse supply chain) features greater relative uncertainty when compared to forward logistics and supply chain flows. An effective way to manage uncertainty and variance in operational and organizational systems is by introducing greater flexibility. The literature on flexibility in reverse logistics is surprisingly sparse, with an explicit focus on flexibility in reverse logistics non-existent in the literature. To address this gap in the literature, and building upon literature in supply chain flexibility, we introduce a reverse logistics flexibility framework. The framework is separated into operational and strategic flexibilities. Operational flexibility includes a variety of dimensions such as product and volume flexibility across various reverse logistics operational functions. We have also included strategic flexibility categorized into network and organizational design flexibility dimensions. Additional sub-dimensions are also included in the framework. The framework is useful for practical managerial decision making purposes such as process improvement or programmatic evaluation. The framework is also useful as a theoretical construct for reverse logistics empirical research. To exemplify the practical utility of the framework we introduce a performance evaluation of third party reverse logistics providers model using a novel neighborhood rough set approach. Using illustrative data, sensitivity results help evaluate the neighborhood rough set technique's robustness with various reverse logistics performance factors. This paper sets the foundation for significant future research in reverse logistics flexibility.