Valuation of Reverse Logistics Company Based on FRO and FMADM

The aim of this paper is to evaluate the reverse logistics company under uncertainty. Because of the shortage of successful examples and complete and certain knowledge, many uncertain factors and risk are inherent in the process of valuation. The paper uses quantitative and qualitative data to model reverse logistics companies consisting of four attributes. A combination method of fuzzy real option (FRO) and fuzzy multiple attribute decision making (FMADM) is developed. The method selects the L-R type trapezoidal fuzzy number to calculate the value and result is transformed into an interval value by the minimum distance method. The proposed method incorporates subjective judgments with statistical uncertainties and gives investors a better understanding of the problem when making investment decision.