An Optimization-Based System Dynamics Simulation for Sustainable Policy Design in WEEE Management Systems

Camilo Llerena-Riascos, Sebastián Jaén, Jairo Rafael Montoya-Torres and Juan G. Villegas
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Camilo Llerena-Riascos: ALIADO—Analytics and Research for Decision Making, Department of Industrial Engineering, Universidad de Antioquia, Calle 67 No. 53-108, Medellín 050010, Colombia
Sebastián Jaén: ALIADO—Analytics and Research for Decision Making, Department of Industrial Engineering, Universidad de Antioquia, Calle 67 No. 53-108, Medellín 050010, Colombia
Jairo Rafael Montoya-Torres: Research Group in Logistics Systems, School of Engineering, Universidad de La Sabana, km 7 Autopista Norte de Bogota, D.C., Chia 140013, Colombia
Juan G. Villegas: ALIADO—Analytics and Research for Decision Making, Department of Industrial Engineering, Universidad de Antioquia, Calle 67 No. 53-108, Medellín 050010, Colombia

Sustainability, 2021, vol. 13, issue 20, 1-23

Abstract: The increase in the use of electrical and electronic devices worldwide has created a rapid growth of waste of electrical and electronic equipment (WEEE). The current paper presents an optimization-based simulation (OBS) approach that allows the design of sustainable WEEE management system policies. The proposed OBS approach integrates a system dynamics (SD) model and a mixed-integer nonlinear programming (MINLP) model to improve the representation and performance of the WEEE processes considering their operative and strategic interdependence. The SD component elicits the complexity of the WEEE generation process. Complementarily, the MINLP model periodically optimizes key variables of the WEEE management system. Computational results in a case study based on WEEE from Colombian mobile phones illustrates how an approach solely based on SD simulation is unable to capture the operative-strategic nature of the system and perform optimal parameter updates. By contrast, the OBS approach of this paper outperforms an exclusive SD analysis both in the economic and environmental performance of the system. It obtains 33% more profits and 65% more environmental benefits. Moreover, for this case study, the model suggests that the cornerstone of the WEEE management system for increasing its performance is the replacement rate.

Keywords: system dynamics; simulation optimization; policy optimization; Waste Electrical and Electronic Equipment (WEEE); reverse logistics; circular economy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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