Energy-resilient closed-loop supply chain design managed by the 3PL provider: A pick-up strategy and data envelopment analysis

Abstract

Population growth and the development of transportation networks have caused the world to face a larger volume of scrap tires, which can cause critical environmental challenges if they are not properly disposed of after being ultimately used. Thus, implementing appropriate recovery practices has developed. The existing challenges in the forward and reverse integration flow motivate leaders to submit a third-party logistics service provider (3PL) as an appropriate option for outsourcing activities. As a result, an inventive closed-loop supply chain (CLSC) network is necessary. A multiple objective, product, and period mathematical model is proposed to develop the CLSC under 3PL management in the tire industry. The data envelopment analysis (DEA) method is applied to choose a better set of manufacturers to coordinate with 3PL. The motivating pricing approach is also considered for appropriate recovery practices, and resiliency was investigated against disruption at crucial levels. This model aims to minimize the costs of diverse processes over scrap products and energy consumption and reach a sufficient level of responsiveness to customers. For solving the multi-objective model, the augmented ε-constraint (AUGMECON2) method leads to Pareto-optimal solutions. The results show that 3PLs improve the supply chain (SC) procedure and increase the responsiveness to customer demand. Also, by planning to increase product recycling, it is possible to save money when purchasing raw materials from suppliers.