| Title |
A simulation-based optimization approach for network design: The circular economy perspective |
| ID_Doc |
3373 |
| Authors |
Bal, A; Badurdeen, F |
| Title |
A simulation-based optimization approach for network design: The circular economy perspective |
| Year |
2022 |
| Published |
|
| DOI |
10.1016/j.spc.2021.12.033 |
| Abstract |
The Circular Economy (CE) is identified as a solution to address negative impacts due to conventional 'take-make-consume-dispose' practices. We posit that a new business model termed Lease & Sell, which integrates the product-service-system (PSS) strategy with product sale for ownership, could enhance opportunities to promote circularity. This paper presents a simulation-based optimization approach for closed-loop network design to make location and allocation decisions when implementing a Lease & Sell strategy. The proposed approach is applied to the case of appliance manufacturer to compare performance when the company only sells product for ownership vs. when a Lease & Sell strategy is applied. Results show that while profitability increases with Lease & Sell when more End of Life (EoL) strategies are introduced (i.e., reuse, remanufacture, and recycling), the selling price for products in secondary markets has a higher impact on overall benefits. Findings also show that trade-offs exist between profitability, lead time, and social objectives.(c) 2022 Institution of Chemical Engineers. Published by Elsevier Ltd. All rights reserved. |
| Author Keywords |
Discrete event simulation; Multi objective optimization; Circular economy; Supply chain network design; Product service systems |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI) |
| EID |
WOS:000789137500007 |
| WoS Category |
Green & Sustainable Science & Technology; Environmental Studies |
| Research Area |
Science & Technology - Other Topics; Environmental Sciences & Ecology |
| PDF |
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