Circular economy implementation in waste management network design problem: a case study

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Circular economy implementation in waste management network design problem: a case study Dušan Hrabec1 Pavel Popela2

· Jakub K˚udela2 · Radovan Šomplák3 · Vlastimír Nevrlý2 ·

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Abstract 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. Keywords Circular economy · Robust optimization · Facility location · Waste treatment · Decision-dependent production · Network design

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Dušan Hrabec [email protected]

1

Faculty of Applied Informatics, Tomas Bata University in Zlín, Nad Stránˇemi 4511, 760 05 Zlín, Czech Republic

2

Faculty of Mechanical Engineering, Brno University of Technology, Technická 2, 616 69 Brno, Czech Republic

3

Sustainable Process Integration Laboratory, NETME Centre, Faculty of Mechanical Engineering, Brno University of Technology, Technická 2, 616 69 Brno, Czech Republic

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D. Hrabec et al.

1 Introduction The current volume of waste produced worldwide has caused serious debates on waste treatment effectiveness (Martin et al. 2015). A considerable amount of waste is treated inefficiently and non-environmentally friendly (Ghiani et al. 2014). However, waste may not only represent an environmental and economic burden, but also an opportunity as a secondary source (Eiselt and Marianov 2015). The circular economy is increasingly seen as a possible solution to address sustainable development. It prioritizes waste treatment methods in the order of reduction, reuse, recycling, energy recovery and disposal of waste (Geissdoerfer et al. 2018). Implementation of such circular economy into existing waste management (WM) network requires not only a need of new trends and methods in waste treatment but also research proposing new integrated mo