Supplier selection in closed loop supply chain by an integrated simulation-Taguchi-DEA approach

Purpose – Reverse logistics refer to processes related to the reuse of products. The role of suppliers’ performance is crucial in achieving quality, cost, service and delivery aims of a supply chain. The selection of suppliers is regarded as one of the critical issues encountered by purchasing and operations managers in a supply chain to enhance organization’s global marketplace competitiveness. Most of the supply chain models are rather complex problems. Consequently, it is impossible to propose systematic models to handle them. Therefore, in this paper a new integrated approach based on experimental design and computer simulation is proposed for supplier selection. The paper aims to discuss these issues. Design/methodology/approach – In this study, a simulation approach is implemented to determine certain equivalent of parameters values in a CLSC network design which cannot be computed through mathematical model. Suppliers’ order quantities are investigated by Taguchi method for planning time horizon. M...

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