Comprehensive Performance Measurement Methodology for Reverse Logistics Enterprise

256 Pages·2015·3.17 MB·English

University of Windsor
Scholarship at UWindsor
Electronic Theses and Dissertations
2015
Comprehensive Performance Measurement
Methodology for Reverse Logistics Enterprise
Mohammed Shaik
University of Windsor
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Shaik, Mohammed, "Comprehensive Performance Measurement Methodology for Reverse Logistics Enterprise" (2015).Electronic
Theses and Dissertations.Paper 5247.
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Comprehensive Performance Measurement
Methodology for Reverse Logistics Enterprise

by
Mohammed Najeeb Shaik

A Dissertation

Submitted to the Faculty of Graduate Studies
through Industrial and Manufacturing Systems Engineering
in Partial Fulfillment of the Requirements for
the Degree of Doctor of Philosophy at the
University of Windsor

Windsor, Ontario, Canada

2014

© 2014 Mohammed Najeeb Shaik
Comprehensive Performance Measurement Methodology for Reverse Logistics Enterprise

by

Mohammed Najeeb Shaik

APPROVED BY:

__________________________________________________
M. Jaber, External Examiner
Ryerson University

__________________________________________________
B. Chaouch
Odette School of Business

__________________________________________________
G. Zhang
Department of Mechanical, Automotive & Materials Engineering

__________________________________________________
F. Baki
Odette School of Business, Cross-appointed to IMSE

__________________________________________________
W. Abdul-Kader, Advisor
Department of Mechanical, Automotive & Materials Engineering

October 10, 2014
DECLARATION OF CO-AUTHORSHIP / PREVIOUS PUBLICATION

I. Co-Authorship Declaration

I hereby declare that this dissertation does not incorporate material that is result of
joint research. In all cases, the key ideas, primary contributions, frameworks, methods,
data analysis and interpretation, were performed by the author and Dr. Walid Abdul-
Kader, as advisor.

I am aware of the University of Windsor Senate Policy on Authorship and I
certify that I have properly acknowledged the contribution of other researchers to my
dissertation, and have obtained written permission from each of the co-author(s) to
include the above material(s) in my dissertation.

I certify that, with the above qualification, this dissertation, and the research to
which it refers, is the product of my own work.

II. Declaration of Previous Publication

This dissertation includes three (3) original papers that have been previously published /
submitted for publication in peer reviewed journals, as follows:

Dissertation Publication title/full citation Publication
Chapter status
Chapters 2, Shaik, M.N., and Abdul-Kader, W. (2012). Performance Published
3 and 4 measurement of reverse logistics enterprise: A
comprehensive and integrated approach, Measuring
Business Excellence, 16(2), 23-34.
Chapters 2, Shaik, M.N., and Abdul-Kader, W. (2014). Published
3 and 4 Comprehensive performance measurement and causal
effect decision making model for reverse logistics
enterprise, Computers & Industrial Engineering, 68(1), 87-
103.
Chapters 2, Shaik, M.N., Abdul-Kader, W. (2014). Analyzing the Published
3 and 4 performance measurement of reverse logistics: An
integrated MCDM approach, Proceedings of
Administrative Sciences Association of Canada, May
10-13, Muskoka, Ontario.

iii
I certify that I have obtained a written permission from the copyright owner(s) to
include the above published material(s) in my dissertation. I certify that the above
material describes work completed during my registration as graduate student at the
University of Windsor.

I declare that, to the best of my knowledge, my dissertation does not infringe upon
anyone’s copyright nor violate any proprietary rights and that any ideas, techniques,
quotations, or any other material from the work of other people included in my
dissertation, published or otherwise, are fully acknowledged in accordance with the
standard referencing practices. Furthermore, to the extent that I have included
copyrighted material that surpasses the bounds of fair dealing within the meaning of the
Canada Copyright Act, I certify that I have obtained a written permission from the
copyright owner(s) to include such material(s) in my dissertation.

I declare that this is a true copy of my dissertation, including any final revisions,
as approved by my dissertation committee and the Graduate Studies office, and that this
dissertation has not been submitted for a higher degree to any other University or
Institution.
iv
ABSTRACT

Nowadays, due to increased competition caused by globalization and high rates of
innovation supply chains continue to have shorter life-cycle products. More liberal return
policies, increasing enforcement of take-back laws, heightened environmental regulations,
increase in financial returns, good corporate image, increasing customer demands, have
made enterprises face the challenges of strategically managing the returned and discarded
products. Therefore, handling of product returns has led the reverse logistics activities to
be effective and efficient. Efficiency of reverse logistics is achieved by reducing the
waste, recapturing recovered value, reducing inventory investments, and optimizing the
collection networks. Reverse logistics effectiveness allows enterprises an opportunity to
improve competitiveness by building consumer confidence through handling of returned
products, liberalized returns policies, operations of take-back networks, and green aspects
of performance. But due to the intrinsic complexities of reverse logistics operations, such
as uncertainty in quality, quantity, and timing of returns, makes the product returns
process more complicated. The present literature on reverse logistics focuses on the
factors that support the enterprises to manage and optimize their operations to remain
competitive, but does not reflect upon the comprehensive performance measurement on
how enterprises have to measure their reverse logistics activities.

To contribute to the field, this research is carried out to study the performance
measurement in reverse logistics enterprise to fill the gap in the literature. This
dissertation presents a CRLEPMS - Comprehensive Reverse Logistics Enterprise
Performance Measurement methodology to facilitate performance measurement and
decision making for the enterprise involved in reverse logistics. It examines different
performance measurement attributes and criteria for measuring reverse logistics
performance. It investigates the inner and inter relationships among different criteria of
attributes and also among clusters of attributes applying DEMATEL, FANP and AHP
MCDM methods. Further, the enterprise computes the comprehensive overall
performance index in order to benchmark its performance with best in class practices.
v
The application of the CRLEPMS methodology provides the enterprises with a real world
viewpoint of what and how performance attributes and measures impact the
comprehensive overall performance index, so that they get feedback and continuously
improve their product returns practices.
vi
DEDICATION

To the memory of my beloved parents
for their encouragement for education

and

MA, FA, KA, AR, and AA
for their sacrifices, patience and support during this journey

vii
ACKNOWLEDGEMENTS

Alhumdulillah. It was a hard decision to work on my doctoral program after a long time
at various industries. In this long journey, as is always the case there are many people to
thank. I wish to express my deepest appreciation to my dissertation supervisor, Dr. Walid
Abdul-Kader for his continuous encouragement, advice, guidance and support during my
doctoral study at the University of Windsor.

I would like to thank my doctoral committee members Dr. Gouqing Zhang, Dr. Ben
Chaouch, and Dr. Fazle Baki for their insights and valuable suggestions to this work.
Also, I would like to thank Dr. Mohammed Jaber, Ryerson University for being my
external examiner and for helpful comments.

I am thankful to Dr. Waguih El-Maraghy, Dr. Ahmed Azab, Dr. Zbigniew Pasek and Dr.
Bharat Maheswari for their support during my study at the University of Windsor.
Thanks to administrative staff of the Industrial and Manufacturing Systems Engineering,
Angela Haskell, Qin Tu, Sandra Mehenka and Christine Maitre of Faculty of Graduate
Studies for their assistance.

I would like to thank Dr. Chialin Chen, and Dr. James McKeen, of Queen's University,
Dr. Kevin Ferreira of University of Toronto and Dr. Ross Judd of McMaster University
for their support during my program.

I am also thankful to the Department of Industrial and Manufacturing Systems
Engineering and Faculty of Graduate Studies at University of Windsor for providing me
the financial aid and all kinds of supportive facilities throughout my study. Also, thanks
to my friends Zulfiqar Ali, Wajid Ali Akbar, Hanumantha Rao who helped me whenever
I needed them.

My deepest gratitude is extended to my spouse, and children for their encouragement,
patience, and support during these years of study. My achievements would not have been
possible without their help.
viii
TABLE OF CONTENTS

DECLARATION OF CO-AUTHORSHIP / PREVIOUS PUBLICATION.. iii
ABSTRACT......................................................................................................... v
DEDICATION..................................................................................................... vii
ACKNOWLEDGEMENTS................................................................................ viii
LIST OF TABLES.............................................................................................. xii
LIST OF FIGURES............................................................................................ xix
LIST OF ABBREVIATIONS............................................................................ xxi
CHAPTERS
CHAPTER 1 INTRODUCTION
1.1 Background and Need for Research………………….………...……… 1
1.1.1 Performance Measurement in Reverse Logistics ……...…............. 1
1.1.2 Enterprise Performance Measurement..........………………..…... 2
1.2 Dissertation Aim and Objectives……………………................……… 3
1.3 Research Process.....………………………………………...... ……… 4
1.4 Research Contributions……………………………...............………… 6
1.5 Dissertation outline……………………………………......................... 6
CHAPTER 2 REVIEW OF LITERATURE
2.1 Reverse Logistics ……………………….……...………………........... 8
2.2 Differentiation…………………………………………..……............... 12
2.3 Performance Measurement concepts …………………………….......... 13
2.4 Performance Measurement and Performance Evaluation in Reverse
Logistics ……………………...……...................................................... 16
2.5 Gaps in Literature ……………………………....................................... 33
2.6 Summary ………………………………………………...........………. 34
CHAPTER 3 CONCEPTUAL FRAMEWORK AND METHODOLOGY
3.1 Problem Definition ……………………………………….…..….......... 35
3.2 Features of the Reverse Logistics Enterprise ……………..…………... 36
3.3 Factors and Requirements for Performance Measurement in Reverse
Logistics.................................................................................................. 37
3.4 Analyzing Performance Measurement framework for Reverse
Logistics Enterprise................................................................................. 40
3.5 Selecting of the performance measurement frameworks........................ 41
3.6 Developing the Conceptual framework for the present study................. 45
3.7 Development process for Performance Measurement framework of
ix