Waste Electrical and Electronic Equipment Recycling with Capacity Constraints and Demand Forecast Updating

Abstract

Waste electrical and electronic equipment (WEEE) recycling plays an important role in the control of environmental pollution and sustainable use of resources. With great government incentives, third-party recycling enterprises emerge as a bridge in the formal WEEE recycle supply chain. To help the supply chain operate stably, we investigate the optimal recycle planning for the third-party recycling enterprises considering capacity constraints and demand forecast updating. A two-stage stochastic programming model is formulated. A closed-form optimal solution for the second-stage model is derived based on KKT conditions. The sampling average approximation method and genetic algorithm are combined to solve the first-stage model. A numerical study is conducted to validate the proposed model and solution.