A system dynamics approach to product design and business model strategies for the circular economy

Abstract

Abstract By means of a system dynamics computer simulation model, this paper analyzes the systemic effects of combining multiple product design and business model strategies for slowing and closing resource loops in a circular economy. In the model, green (i.e., recycled) and brown (i.e., traditional linear) products, as well as products under a PSS model, flow in a closed-loop supply chain. The model structure covers issues related to product design, product use and replacement, second-hand use, product discard, and finally, collection and processing for product recycling. Results from this research provide insights into the relationship between design considerations at the beginning of a product's life and their implications for the product's take-back stage when a new manufacturing cycle begins. The main contributions of this paper are the considerations of time delays and reinforcing feedback loops in the design of an effective closed-loop supply chain.