EURO 2024 Copenhagen
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2435. From a linear supply chain to a circular economy: The impact of sustainable sourcing labeling regulations

Invited abstract in session TA-23: Policy and legislation for a circular economy, stream Circular Economy, Remanufacturing and Recycling .

Tuesday, 8:30-10:00
Room: 82 (building: 116)

Authors (first author is the speaker)

1. Lena Silbermayr
Department of Information Systems and Operations, WU Vienna University of Economics and Business
2. Danja Sonntag
Lund University
3. Martin Waitz
Institute for Production Management, WU Vienna University of Economics and Business, Austria

Abstract

Across the clothing industry accounting for 60% of the world's textile waste, less than 1% of the used products undergo closed-loop recycling enabling the use for equal-value applications. This highlights the problem of a highly linear supply chain in the textile industry, where textiles are produced, used and mainly disposed of.

This paper contributes to the current debate on transforming the textile industry into a circular economy. Taking into account the challenges of a highly seasonal industry with high demand uncertainties, we combine inventory management practices to reduce waste with a systematic analysis of the economic and environmental impacts of different sustainable sourcing labeling regulations. In particular, we focus on three potential policies set by governmental regulators and their impact on the manufacturer’s sourcing decision regarding traditional and chemically recycled feedstock. In the analysis, we incorporate the effect of the manufacturer’s purchasing decisions and governmental regulations about sustainable sourcing labeling on consumer demand driven by consumer environmental awareness. We derive the manufacturer’s optimal sourcing and production quantities and analyze their impact on economic and environmental key performance indicators.

Keywords

Status: accepted

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