Modelling reverse supply chain through system dynamics for realizing the transition towards the circular economy: A case study on electric vehicle batteries

Abstract

Circular economy (CE) is increasingly recognized as an issue of critical importance for companies, academics, practitioners, policymakers, and society as a whole. A successful transition from the current, linear economic model towards a resource-efficient circular economy model requires a shared understanding of the interplay among the building blocks of circular economy and the interaction among various decision factors. This research aims to explore these dynamics using environmental, societal, and economic aspects from a reverse supply chain perspective.This paper presents a model to represent the complex system of reverse logistics to recover post-used products at their end-of-life (EoL) stage. A system dynamics (SD) approach is used to model the dynamics of cost, revenue, and strategic and regulatory decisions. In addition, the interplay among the main pillars of circular economy research is explored through a case study of electric vehicle batteries (EVBs). Moreover, the main enablers and challenges for recovery of end-of-life batteries are presented. The findings show the importance of a shared understanding to achieve a successful transition towards a resource-efficient and circular economy model. Furthermore, reuse strategies such as remanufacturing and repurposing present a huge market potential for the recovery of electric vehicle batteries in the near future.