A simulation-optimization model for sustainable product design and efficient end-of-life management based on individual producer responsibility

Abstract

Abstract This paper integrates two decision problems, namely, the design alternative selection and EOL option determination, for a family of products based on individual producer responsibility in the entire life cycle considering possible uncertainties. To address three pillars of sustainability (economic, environmental, and social), three objectives are considered: the maximization of the producer’s profit, the minimization of the environmental impact, and the maximization of the social impact. Two constraints to control recovery and recycling rates are considered, which are usually imposed by legislative directives. A simulation-optimization model is developed to formulate and solve the model. An example based on a real-world case is provided to illustrate the application of the model. The proposed model is a useful tool for producers to evaluate the EOL performance of their products and to analyze the effect of EPR goals or regulations on their profitability, and for policy makers to predict the response of producers to a given package of circular-economy strategies.