Keywords: paper industry, reverse logistics, optimisation, environmental pollution, three-win strategy, waste management, waste minimisation, environmental management, economic recycling, reuse, India, wastepaper costs, lumber, pricing policy, wastepaper collection
Three-win strategy with optimisation approach for recycled paper manufacturer
Waste-minimisation strategies are of vital importance for decreasing waste, pollution load and production costs. This enhances the importance of reverse logistics. In this study, a 'Three-win' strategy has been developed for the paper industry in India by considering two Linear Programming (LP) models. The models are for paper production from wastepaper and from lumber as raw materials. Economic implications on the environment of using these alternative material sources as well as the quality of the final product have also been considered in the model formulation. Under varying shortage levels in the two paper supply chains, the strategy proposed helps the manufacturer to decide the cost of wastepaper for an economic recycling option compared to lumber as a raw material. The strategy provides useful insight into improved pricing policy and at the same time encourages wastepaper collection at the source, decreasing environmental pollution.