Assessing the Efficiency of a PSS Solution for Waste Collection: A Simulation Based Approach

Driven by both policy pressures and environmental concerns, new business models are becoming applied in waste management mainly based on introducing more equitable and sustainable pricing schemes (e.g. “pay-as-you-throw”): the aim is to support the transition from a tax based system to a pure service based approach, where the user pays for the actual use of the waste management service provided. This new trend requires the service provider's activities to be planned with a schedule that reflects the actual users’ needs in order to reach a real efficiency in the collection phase: dynamic routing and scheduling schemes, which could be enabled through the application of smart technologies, can lead to a more rational use of the resources. In the last decade, technological progresses allowed a growing use of IoT (Internet-of-Things) applications in the service sector; recent pilot applications are being tested also in waste management; one example is the introduction of bin level detection and data transmission technologies for waste collection. This work aims to contribute to the assessment of IoT-based PSS solutions for waste collection. The main objective is to evaluate the cost efficiency of a PSS for waste collection enabling dynamic scheduling, comparing it to the performance of more common schemes (e.g. fixed routing and scheduling service and call-based service). Hybrid simulation modelling – based on system dynamics, discrete events and agent based modelling- has been applied to test the transition from a fixed to a “pay-as-you-throw” fee in WEEE (waste from electrical and electronic equipment). A test case regarding an Italian municipality has been proposed to assess quantitative results based on a simulation model.