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Role of third-party companies in a sustainable supply chain design

Author

Listed:
  • Mohammad Najjartabar-Bisheh
  • Mojgan Delavari
  • Behnam Malmir

Abstract

Uncertainties and constraints, such as capacity, add to complexity of supply chain network design, while the role of third-party companies in global supply chain networks is increasing. The present work considered the role of third-party companies in supply chain design in order to increase understanding of the uncertainty of demand, capacity constraints, and backorder shortages. A nonlinear mixed-integer model was introduced to optimise a closed-loop supply chain in an international network. Although exact methods are useful for small size instances, the mixed-integer model was solved by two meta-heuristic algorithms in real-size problems. The ANOVA test was applied for small-sized and large-sized problems in order to check the efficiency of meta-heuristics. Results showed that the imperialist competitive algorithm and particle swarm optimisation gained reliable and efficient solutions. A sensitivity analysis of important inventory parameters such as holding cost and demand was also conducted.

Suggested Citation

  • Mohammad Najjartabar-Bisheh & Mojgan Delavari & Behnam Malmir, 2018. "Role of third-party companies in a sustainable supply chain design," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 30(1), pages 95-112.
    • Handle: RePEc:ids:ijlsma:v:30:y:2018:i:1:p:95-112
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    Cited by:

    1. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.

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