Impact of Circular Economy on Waste Elimination Within the Sustainable Supply Chain Framework
Impact of Circular Economy on Waste Elimination Within the Sustainable Supply Chain Framework

Summary/Abstract: In a system of production and consumption, sustainable supply chain management plays a crucial role in overseeing and curbing excessive waste. This research introduces two interconnected supply chains dedicated to waste elimination within the production and consumption processes. The study integrates the tenets of the circular economy (CE) explicitly emphasizing the 3R concepts, which are Reduce, Restore and Recycle. Within this framework, the initial product in the primary chain follows degradation and transforms into raw material for the production system of the secondary chain (secondary production facilities). When transporting used products to recycling facilities, losses may occur due to leakage from the containers during transportation. The unique contribution of this study is determination of the optimal values for price discounts and container leakage costs, emphasizing a key aspect of the CE: the reduction and recovery of discarded items in successive stages. Mixed-integer nonlinear programming is employed for the dual supply chain to optimize the joint cost function using classical methods. A noteworthy numerical outcome is established to validate this concept: with an increase in the leakage cost per container from $5 to $10, the overall supply chain costs are immediately reduced by approximately 90%.

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