7. CONCLUSION
To the best of the knowledge of the authors, this study is the first study to direct attention towards the risks in reverse logistics. Impact of this risk can be minimized or even nullified. In order to maximise the profitability, risks involved in reverse logistics must be analysed. The findings in this paper will give them a better understanding of the relationship between the various functions involved in RL. The strength of this method is that it can be used to help decision makers to make key decisions considering not only the economic benefits but also the environmental and societal benefits considering the vagueness of experts’ opinions. The methodology proposed identifies the hierarchy of actions to be taken for handling different risks hindering the implementation of reverse logistics. In addition, it is possible to vary the weights given to attributes so that priorities for attributes can be varied at any point. The present paper is also relevant for managers or policy makers who are carrying out RL operations. The findings of this work shows that the inventory risk is highly prioritized, and focused greatly in order to increase the effectiveness of RL adoption.
Once the risks in reverse logistics are prioritised, the responsiveness based risk mitigation strategies can be selected considering the risk- return trade- off. This study is important as it sheds lights on the risk perception of plastic recycling industry considering the potential risk factors. The results show that better performance in green practices is achieved by considering risks. This work bridges a gap on the lack of research that provides a solid understanding, review of risks involved in RL.
