Reverse and Green Logistics Cost Simulation Using Analytical Hierarchy Process

Abstract

The research aims to measure the effectiveness of the strategies of modern retailers which implementing reverse logistics activities, and to be believe that it could increase not only business competition, but also consumer satisfaction. The object of research is 20 modern retailers ranging from convenience stores to hypermarket stores. The methodology implemented in the form of setting parameters and assessment criteria which are arranged in the form of priority scale and analyzed using the Analytical Hierarchy Process or AHP method. The respondents are the decision makers in terms of product delivery, logistics, distribution and warehouse including making purchases both directly and indirectly. Sub parameters and sub criteria that are arranged then reevaluated using the ExpertChoice instrument to see the resulting scale consistency. Broadly speaking, the highest priority scale was 0.441 for the criteria for agility, 0.428 for the efficiency criteria, 0.318 for the stakeholder criteria, 0.271 for the process criteria and 0.146 for the environment criteria. The result of simulation cost is less than 8 percent of the profit margin per product returned.