ABSTRACT With the acceleration of industrialization and population growth, there has been a notable surge in municipal solid waste (MSW) production globally. This necessitates the development of efficient waste management strategies that align with sustainable economic, environmental, and social goals. Implementing sorting and source separation policies serves as foundational steps toward optimizing material flow and resource utilization. In industrial areas, waste generation around a primary source may improve policy implementation and participation. Given the unique strategic context of port environments, Bahregan Port in Iran was selected as a case study to evaluate the proposed methodology. Three integrated scenarios were formulated and prioritized using the ELECTRE-I model: currently practiced collection method, and segregated collection followed by source separation of MSW into two or three groups. The analysis identified the third scenario as the most effective approach. Remarkably, when evaluating the results under optimistic and pessimistic conditions, the ranking of preferences remained consistent across scenarios in the optimal state. Under pessimistic conditions, all scenarios received identical scores, indicating significant uncertainty in criteria weights. Furthermore, sensitivity analysis revealed that criteria such as the raw material sources protection, emissions in the waste separation sector, and greenhouse gas emissions were highly influential. Interestingly, criteria with the highest weighting did not always dictate the final scenario selection. External factors, such as expert opinions on specific criteria, played a pivotal role in scenario prioritization. This research serves as a foundational study for source separation initiatives, offering practical and technically viable strategies to enhance environmental sustainability within industrial settings. Implications Statement Rising industrialization and population growth have led to increased municipal solid waste (MSW) production worldwide. To address this, efficient waste management strategies are essential, focusing on sustainability and resource optimization through sorting and source separation policies. By prioritizing the scenario of segregated collection followed by source separation – industrial areas can optimize material flow and resource utilization. The study highlights the influence of criteria like raw material protection, emissions, and greenhouse gases, making this research foundational for enhancing environmental sustainability in industrial settings. This study provides practical strategies for enhancing environmental sustainability in industrial settings through source separation initiatives.