The aim of this thesis is to investigate how the collection of industrial waste can be managed with different types of sub-contraction. Literature review was conducted in order to obtain knowledge about how this type of problems can be modelled along with the types of sub-contraction and how the logistical performance could be assessed. Interviews were performed to get a better understanding of the decision making for this type of problems. Thereafter, two mathematical models were formulated in order to model the decisions at tactical and operational level. In order to get more insights the developed models were implemented with real-life data. Following, further testings were performed to determine the efficiency of the developed models and to obtain managerial insights. A key conclusion was that among the three types of sub-contraction that were examined, the results obtained from the route based and the tour based type give the most realistic solutions. Overall, the results indicate that the introduction of sub-contraction in waste collection brings considerable cost-savings.