Production planning for vehicle recycling factories in the EU legislative and global business environments

Abstract

End-of-life vehicles (ELVs) are a priority in the EU waste flow, and data show that as many as 6.34 million vehicles were processed in 2008. This paper focuses on the production process in a vehicle recycling factory. It presents a tactical production planning problem for vehicle recycling factories in the EU legislative and global business environments. The problem is formulated as a linear program, which provides optimal storage, processing and recovery, recycling and landfill disposal route decisions. The proposed model can not only help vehicle recycling factories improve their eco-efficiency and profitability but also answer many important questions. The present paper deals with questions regarding which costs should be set in EU member states for landfill disposal, combustion in municipal solid waste incinerators and processing in advanced thermal treatment plants so that the ELV Directive can have the most positive eco-effect on the vehicle recycling factory business. The cost increase for landfill disposal will not always reduce the quantity of disposed automobile shredder residue (ASR). The influence of the ELV Directive on the vehicle recycling factory business is analysed. Future quotas will not endanger their profitability. Comprehensive testing of the proposed model showed that the control of the recycling system efficiency should be done at the system level because it will in no way jeopardise the ELV Directive objectives.