Sustainable Supply Chain Optimization Model with Two-Stage Inspection: Integrated Circular Economy and Inflation
摘要
Effective waste management is essential for promoting sustainability, as it helps minimize the environmental harm of human activities and encourages the responsible use of resources. In the metal industry, recycling has become an increasingly vital component of sustainable practices, while refurbishing plays a key role in ensuring efficient waste management within a circular economy. There is still considerable opportunity to collect waste materials and convert them into valuable products. Optimizing the manufacturing process can enhance the transformation of resources into useful products. During production, some defective metal products contribute to waste. These defective items are refurbished and then sold on the market. Metal waste is produced during the final production process, specifically during the grinding, refining, and trimming stages. Adopting the circular economy concept, this collected metal waste is recycled and reused as raw material for manufacturing. As inflation drives up costs, industries are incentivized to adopt more efficient practices, turning towards recycling metal products to reduce overspending. Additionally, implementing carbon taxes further encourages the industry to minimize emissions by adopting sustainable practices. The metal industry can significantly lower its environmental impact, aligning with global efforts to establish a sustainable future. This study proposes a sustainable production method involving collaboration between metal manufacturers and retailers. The Hessian matrix has been used to optimize the suggested non-linear model. The results of the numerical example demonstrate that utilizing recycled metal waste as a raw material is environmentally friendly, reducing waste disposal or landfilling by at least 75% at minimal expense. Sensitivity analysis is employed to demonstrate the impact of changing parameters on optimal solutions. Finally, the study’s managerial implications are discussed, and the findings are presented to guide decision-making within the organization.