Collection of recyclables from cubes – A case study

• We study collection of paper and glass from recycling cubes.
• A heuristic based model for planning the service with a rolling horizon is developed.
• We analyze how outsourcing the service can result in conflicts of interest.
• The new system can lead to an overall better financial solution.

Collection of recyclable materials is a major part of reverse logistics and an important issue in sustainable logistics. In this paper we consider a case study where paper and glass are collected from recycling cubes and transported to a treatment facility and processed for reuse. We show how outsourcing the planning and transportation of this service may result in conflicts of interest and unsustainable solutions. Finally, we suggest an alternative payment structure which can lead to a common goal, overall financial sustainability, and an improved financial situation for both the public company and the logistics provider.