The Effects of Recycling Locations on Closed-loop Supply Chain Performance

Abstract

This chapter shows how different recycling locations influence closed-loop supply chain (CLSC) cost and carbon dioxide equivalents (CO₂e), as well as reveal competitive recycling and manufacturing locations, including relevant distance- and location-related factors, for achieving very low cost and CO₂e CLSCs supporting circular economy. Exploratory data analysis is used to analyze results from simulations based on empirical data and market rates relating to textile and clothing CLSCs. The results show that most very low-cost and CO₂e CLSCs consist of fabric and garment manufacturing located at the same or nearby locations, and whose labor costs and electricity CO₂e are low, whether fiber recycling facilities are located in proximity to used garment sorting facilities or not. Scenario and sensitivity analyses of important cost and CO₂e factors for recycling location competitiveness reveal that increasing used garment prices makes locations with high import duties lose competitiveness, and that varying water freight CO₂e changes comparative location competitiveness.

Citation

Sirilertsuwan, P. (2022), "The Effects of Recycling Locations on Closed-loop Supply Chain Performance", Bals, L., Tate, W.L. and Ellram, L.M. (Ed.) Circular Economy Supply Chains: From Chains to Systems, Emerald Publishing Limited, Leeds, pp. 111-128. https://doi.org/10.1108/978-1-83982-544-620221006