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A Flexible Decision Model for Risk Analysis in Product Recovery Systems

Research paper by Jitendra K. Madaan, Divya Choudhary

Indexed on: 14 Jul '15Published on: 14 Jul '15Published in: Global Journal of Flexible Systems Management



Abstract

The growing realization to employ sustainable practices in order to impede “Environmental Degradation” has called the concept of product recovery system (PRS) to the fore. Recent literature has reported benefits of recovery systems which include direct benefits such as reduction of cost, reclaiming value of used products, profits in secondary markets and indirect benefits such as gaining customer confidence, enhancing the green image of the organization, compliance of regulations, etc. Despite these reported facts organizations are still reluctant in incorporating sustainable practices due to risks associated with PRS. To address these issues, the paper attempts to identify these risks associated with PRS and proposes a flexible decision model for risk analysis, which can assist organizations in the successful implementation of recovery practices. Accordingly, the aim of this research is to consider the risk issues directly affecting the PRS and to study the interrelationship among them. Moreover, the hierarchical relationship among the risks is modeled using total interpretive structural modeling based on their driving power (ability to influence other risks) and dependence (tendency to get influenced by other risks).