Modelling of sharing networks in the circular economy

Abstract

Purpose The purpose of this paper is to develop and optimize a mathematical model based on a framework that integrates key concepts related to a circular economy (CE) and sharing economy (SE) for a leading manufacturer of laptops in India. Design/methodology/approach This study mathematically modelled the integration of sharing networks in a circular production system. This is done through an optimization package that deploys a multi-objective mixed-integer linear programming model. Findings This study evaluated the economic benefit and the environmental impact associated with the aforementioned integration in a production system. This study illustrated the inverse relationship between economic benefit and environmental impact and provided a set of solutions that can be used according to the case organizations goals, capacities and logistical capabilities. Research limitations/implications This study will aid similarly structured companies in adopting this approach to integrate sustainable practices in their production system. It also enumerated Industry 4.0 (I4.0) use-cases that can be used to effectively implement this mathematical model. Further research can be conducted using multiple companies in an inter-dependent network to maximize synergy. Practical implications This study will help to better understand the role of sharing networks in the circular economy model especially in the consumer electronics industry. Originality/value This study is the first of its kind to mathematically model the integration of aspects related to SE and CE. It also validates the aforementioned model using a numerical case-study and offers decision-support to key executives within the case organization.