Reverse Logistics Network Design for Plastic Waste Management in Jakarta: Robust Optimization Method

Abstract

Indonesia experiences a consistent annual escalation in plastic production, primarily attributed to the high demands from numerous industries. As a result of this escalated production rate, more significant quantities of plastic waste continue to be produced each year. In this regard, it is essential to comprehend that uncontrolled plastic waste generates harmful substances for humans and the environment. A reverse logistics network was introduced and developed to decrease the damaging effects of this waste on the environment. The Indonesian plastic waste reverse logistics system encountered some uncertainties due to limited data availability, showing significant fluctuations. To address these uncertainties, this study proposed a robust optimization model for the management of plastic waste within the reverse logistics system in Jakarta. The results showed that the model could accurately identify optimal facility locations and determine the exact quantity to transport between facilities while considering social, economic, and environmental factors. The results also showed that the proposed model minimized cost by 332 million USD, reduced gas emissions to 626 million m3 (ca. 1.2 billion kgCO2), and maximized labor by 611 thousand people.

Keywords

• network design
• plastic waste management
• reverse logistics
• robust optimization