Applicability of Industry 4.0 Technologies in the Reverse Logistics: A Circular Economy Approach Based on COmprehensive Distance Based RAnking (COBRA) Method

Journal article, 2022

The logistics sector plays one of the most important roles in the supply chain with the aim of providing a fast, flexible, safe, economical, efficient, and environmentally acceptable performance of freight transport flows. In addition, the popularization of the concept of a circular economy (CE) used to retain goods, components, and materials at their highest usability and value at all times, illustrates the importance of the adequate performance of reverse logistics (RL) processes. However, traditional RL is unable to cope with the requirements of modern supply chains and requires the application of Industry 4.0 technologies, which would make it more efficient. The main aim of this study was to evaluate the applicability of various Industry 4.0 technologies in the RL sector in order to point out the most applicable ones. To solve the defined problem, a novel multi-criteria decision making (MCDM) model was defined by combining the best-worst method (BWM) to obtain the criteria weights, and the newly developed comprehensive distance-based ranking (COBRA) method to rank the technologies. Another aim of the study was to validate the newly established method. The results indicated that the most applicable technologies were the Internet of Things, cloud computing, and electronic-mobile marketplaces. These technologies will have a significant impact on the development of RL and the establishment of CE systems, thus bringing about all the related positive effects.