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3174. E-waste reverse logistics in India: Collaborative collection and processing

Invited abstract in session MA-23: Circular Economy, Remanufacturing and Recycling, stream Circular Economy, Remanufacturing and Recycling .

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

Authors (first author is the speaker)

1. Aditya Prabhakar
Operations Management and Quantitative Techniques, Indian Institute of Management Indore

Abstract

One of the widely adopted practices for e-waste reverse logistics is the sealed bid process. In this process, the seller first invites quotations for selling a set of e-waste. The recyclers then send their bids/ quotations in sealed envelopes which are opened only on the prescribed date. The recycler with the highest bid wins the contract.
In the above process, a seller may sell a particular type of e-waste or a combination of different types of e-waste. However, the recycler may or may not have adequate infrastructure to process each type of e-waste offered by the seller. In such situations, the recycler may collaborate with another recycler(s) to ensure better efficiency and make a higher profit. However, there are various uncertainties faced by the recyclers in terms of the quantity, quality, recovery rate, procurement cost, transportation cost, and processing cost of the e-waste.
This paper tries to address the uncertainty faced by the recycler in terms of the procurement cost during a sealed bid process. While deciding on whether to bid or not in a sealed bid process, the recycler faces a tradeoff between profit margin and the quantity of e-waste collection. A stochastic integer linear programming model is proposed that would help recyclers decide an optimal bidding price for a certain set of e-waste to maximize their profit. Further, this paper analyses the impact of a coalition and the capacity allocation on the profit shares of the partner firms.

Keywords

Status: accepted

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