Analysis of the financial risk under uncertainty in the municipal solid waste management involving multiple stakeholders

Abstract

This paper presents a multi-objective optimization approach for the strategic planning of a municipal solid waste (MSW) management system under uncertainty. The formulation considers the involved tasks such as recycle, reuse, transportation, separation and distribution. The proposed approach also accounts for the multiple involved stakeholders with the objective of maximizing the benefit to all the participants. The main variables that are considered under uncertainty were the MSW availability and the prices of the products made from the recovered MSW. A case study for Mexico is analyzed, where a random generation approach based on historical data is used to introduce three different financial risk levels: the optimistic, mean and pessimistic cases. This way, the obtained results provide additional information about the system. Then, the stakeholders will be more certain of making any decision.