Coordination in Recycling Networks
We consider a legislation-driven recycling network treating discarded products. Our goal is to develop a decentralised coordination mechanism that allows the network to comply with requirements given by environmental legislation, existing for Waste Electric and Electronic Equipment (WEEE). Two decision levels are identified. Tactical decisions concern the negotiation of frame contracts between a focal company representing the network, and the recycling companies for a defined period of time. According to these frame contracts, current orders are assigned to recycling companies and an operational coordination may be applied to (re-)allocate parts of the order in the network. The mechanisms are outlined conceptionally and their interaction is described.
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