Integration of logistics outsourcing decisions in a green supply chain design: A stochastic multi-objective multi-period multi-product programming model

Lhoussaine Ameknassi, Daoud Aït-Kadi and Nidhal Rezg

International Journal of Production Economics, 2016, vol. 182, issue C, 165-184

Abstract: This paper develops a programming model, which combines logistics outsourcing decisions with some strategic Supply Chains’ planning issues, such as the Security of supplies, the customer Segmentation, and the Extended Producer Responsibility. The purpose is to minimize both the expected logistics cost and the Green House Gas (GHG) emissions of the Supply Chain (SC) network, in the context of business environment uncertainty. First, we define a general structure of the closed-loop SC. Second, we provide constructive models to roughly estimate the insourcing and outsourcing logistics costs, and their corresponding GHG emissions. Third, we establish a stochastic plan based on a scenarios approach to capture the uncertainty od demand, capacity of facilities, quantity and quality of returns of used products, and the transportation, warehousing, and reprocessing costs. Fourth, we suggest a programming model, and an algorithm based on the Epsilon-constraint method to solve it. The result is a set of optimal non-dominant green SC configurations, which provide the decision’ makers with optimal levels of logistics outsourcing integration within a decarbonized Supply Chain, before any further low-carbon investment.

Keywords: Supply Chain Integration. Third-Party Logistics. Logistics costs. Green House Gas emissions. Stochastic multi-objective optimization (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527316302274
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:182:y:2016:i:c:p:165-184

DOI: 10.1016/j.ijpe.2016.08.031

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().