Three-level closed-loop supply chain optimization considering self-healing packages

Abstract

The challenge for maintaining a competitive and sustainable supply chains have been considered nowadays. To compete in the market, smart packaging and the utilization of closed-loop supply chains are widely studied. The self-healing packages and closed-loop supply chains are main components to help reduce carbon emissions. This study was about a three-level closed-loop supply chain considering self-healing packages of a single-supplier, single-manufacturer, and multiple retailers. The model was developed and optimized algebraically considering the overall cost minimization. Results of this study showed that the model could be used in real-life application. Total costs could be reduced by manipulating the different parameters such as the ordering costs, set-up costs, holding costs, purchase price and maintenance cost of self-healing packages, forward and reverse logistics transportation cost, and forward logistics variable transportation costs.