Circular economy implementation in waste management network design problem: a case study
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The paper presents a new approach to support the strategic decision-making in the area of municipal solid waste management applying modern circular economy principles. A robust two-stage integer non-linear program is developed. The primary goal tends to reduce the waste production. The generated waste should be preferably recycled as much as possible and the resultant residual waste might be used for energy recovery. Only some waste residues are appropriate for landfilling. The aim is to propose the near-optimal waste allocation for its suitable processing as well as waste transportation plan at an operational level. In addition, the key strategical decisions on waste treatment facilities location must be made. Since waste production is very often hard to predict, it is modeled as an uncertain decision-dependent quantity. To support the circular economy ideas, advertising and pricing principles are introduced and applied. Due to the size of available real-world data and complexity of the designed program, the presented model is linearized and uncertainty is handled by a robust optimization methodology. The model, data, and algorithm are implemented in MATLAB and Julia, using the state-of-the-art solvers. The computational result is a set of decisions providing a trade-off between the average performance and the immunization against the worst-case conditions.
KeywordsCircular economy Robust optimization Facility location Waste treatment Decision-dependent production Network design
The authors gratefully acknowledge the financial support provided by the project Sustainable Process Integration Laboratory—SPIL, funded as project No. CZ.02.1.01/0.0/0.0/15_003/0000456, by Czech Republic Operational Programme Research and Development, Education, Priority 1: Strengthening capacity for quality research. This work was also supported by the project “Computer Simulations for Effective Low-Emission Energy” funded as project No. CZ.02.1.01/0.0/0.0/16_026/0008392 by Operational Programme Research, Development and Education, Priority axis 1: Strengthening capacity for high-quality research. The author D. Hrabec further acknowledges project No. CZ.02.2.69/0.0/0.0/16_027/0008464 (International mobility of UTB researchers in Zlín) funded from the EU Funds—OP Research, Development and Education in cooperation with the Ministry of Education, Youth and Sports, Czech Republic.
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