Modelling of sharing networks in the circular economy. (4th January 2020)

• Record Type: Journal Article
• Authors: Jayakumar, Jaivignesh; K., Jayakrishna; K.E.K., Vimal; Hasibuan, Sawarni
• Is Part Of: Journal of modelling in management. Volume 15:Number 2(2020)
• Page Start: 407
• Page End: 440
• Publication Date: 2020-01-04
• Subjects: Circular economy -- Sharing networks -- Sustainable production -- Multi objective mixed-integer linear programming -- Network design -- Industry 4.0 -- Optimization -- Modelling -- Sensitivity -- Circular economy; Industrial management -- Mathematical models -- Periodicals; Industrial management -- Computer simulation -- Periodicals; Business -- Mathematical models -- Periodicals; Business -- Computer simulation -- Periodicals; 658.4033
• DOI: 10.1108/JM2-05-2019-0101
• Languages: English
• ISSNs: 1746-5664

Abstract

Abstract : Purpose: The purpose of this paper is to develop and optimize a mathematical model based on a framework that integrates key concepts related to a circular economy (CE) and sharing economy (SE) for a leading manufacturer of laptops in India. Design/methodology/approach: This study mathematically modelled the integration of sharing networks in a circular production system. This is done through an optimization package that deploys a multi-objective mixed-integer linear programming model. Findings: This study evaluated the economic benefit and the environmental impact associated with the aforementioned integration in a production system. This study illustrated the inverse relationship between economic benefit and environmental impact and provided a set of solutions that can be used according to the case organizations goals, capacities and logistical capabilities. Research limitations/implications: This study will aid similarly structured companies in adopting this approach to integrate sustainable practices in their production system. It also enumerated Industry 4.0 (I4.0) use-cases that can be used to effectively implement this mathematical model. Further research can be conducted using multiple companies in an inter-dependent network to maximize synergy. Practical implications: This study will help to better understand the role of sharing networks in the circular economy model especially in the consumer electronics industry. Originality/value: This study is the first of its kind to mathematically model the integration of aspects related to SE and CE. It also validates the aforementioned model using a numerical case-study and offers decision-support to key executives within the case organization.