Modelling of sharing networks in the circular economy

Purpose: The purpose of this paper is to develop and optimize a mathematical model based on a framework that integrates key concepts related to a circular economy (CE) and sharing economy (SE) for a leading manufacturer of laptops in India. Design/methodology/approach: This study mathematically modelled the integration of sharing networks in a circular production system. This is done through an optimization package that deploys a multi-objective mixed-integer linear programming model. Findings: This study evaluated the economic benefit and the environmental impact associated with the aforementioned integration in a production system. This study illustrated the inverse relationship between economic benefit and environmental impact and provided a set of solutions that can be used according to the case organizations goals, capacities and logistical capabilities. Research limitations/implications: This study will aid similarly structured companies in adopting this approach to integrate sustainable practices in their production system. It also enumerated Industry 4.0 (I4.0) use-cases that can be used to effectively implement this mathematical model. Further research can be conducted using multiple companies in an inter-dependent network to maximize synergy. Practical implications: This study will help to better understand the role of sharing networks in the circular economy model especially in the consumer electronics industry. Originality/value: This study is the first of its kind to mathematically model the integration of aspects related to SE and CE. It also validates the aforementioned model using a numerical case-study and offers decision-support to key executives within the case organization.