Integrated optimization model and methodology for plastics recycling: Indian empirical evidence

We develop a decision model to integrate three decisions pertaining to location, allocation, and routing of different varieties of recycled plastics. Our decision model allocates recycling collection points to the available centralized return center based on its capacity and ensures similar allocation to all facilities via optimal routing for trucks. The study addresses several pertinent questions such as how to deal with higher collection cost, how to develop a model that jointly considers operational cost reduction along with the achievement of higher environmental benefits, how to reduce sub optimization which is quite common when using standalone decision models, and what are the feasible ways to increase the utilization of collection facilities. We validate the model using data retrieved from a case study in India using a conventional decomposed modelling approach. Our findings demonstrate that the proposed integrated model reduces over ten percent of total recycling costs for both single and multiple products. The results also suggest managers to reduce variances in product quality levels in order to achieve substantial total costs reduction. In addition, to increase the plastic recycling returns and reduce the operational cost, managers need to cluster the customers based on the facility location and offer attractive incentives.