Forward And Backward Optimization With Third-Party Logistics Aspect: A Case Study Of Dhl Supply Chain

Abstract

Due to today's fiercely competitive business environment, supply chain stakeholders are increasingly cooperating with one another. Third party logistics providers (3PLs) must thus manage supply chains for a variety of clients that seek to enhance their forward and reverse logistics operations. Because these supply chains must work in a dynamic environment, 3PLs must decide on several related decisions throughout time. However, in the past, the forward and backward flows of distribution networks were designed separately. This research offers a mixed integer nonlinear programming model for the design of a dynamic integrated distribution network to consider the integrated characteristic of concurrently optimizing the forward and return networks. The resolution of a network plan would, in the end, assist in the determination of various resource plans for the capacities of material handling equipment and human resources.