Politická ekonomie X:X | DOI: 10.18267/j.polek.1491

Impact of Circular Economy on Waste Elimination Within the Framework of Sustainable Supply Chain

Maryam Khokhar ORCID..., Yongrui Duan ORCID..., Munaza Bibi ORCID..., Anshuman Sharma ORCID..., Fahad Alam ORCID...
Maryam Khokhar (corresponding author), School of Economics and Management, Tongji University, Shanghai, China
Yongrui Duan, School of Economics and Management, Tongji University, Shanghai, China
Munaza Bibi, Bahria, Department of Marketing, College of Business Administration, Ajman University, United Arab Emirates
Fahad Alam, School of Economics and Management, Tongji University, Shanghai, China

In a system of production and consumption sustainable supply chain management plays a crucial role in overseeing and curbing excessive waste. This research introduces two interconnected supply chain dedicated to waste elimination within the production and consumption processes. The study integrates the tenets of the circular economy (CE) explicitly emphasizing the 3R concepts, which are Reduce, Restore, and Recycle. Within this framework, the initial product in the primary chain follows degradation and transforms raw material for the production system of the secondary chain (secondary production facilities). While transporting used products to recycling facilities losses can happen due to leakage from the containers during transportation. This study unique contribution is exemplified by determining the optimal values for price discounts and container leakage costs emphasizing a key aspect of the CE: the reduction and recovery of discarded items in successive stages. Mixed-integer nonlinear programming is employed for the dual supply chain to optimize the joint cost function using classical methods. A noteworthy numerical outcome is established to validate this concept: with an increase in the leakage cost per container from $5 to $10 overall supply chain costs were immediately reduced by approximately 90%.

Keywords: Circular economy, production and consumption processes, waste reduction. supply chain, classical methods, supply chain management

Received: September 29, 2024; Revised: December 24, 2024; Accepted: January 14, 2025; Prepublished online: November 11, 2025 

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