Reverse logistics implementation in the construction industry: Paper waste focus

Abstract

Thailand has an increasing demand for housing and infrastructure. This leads to increased amounts of construction and demolition (C&D) wastes. Most of the C&D wastes are reusable and recyclable. However, without proper waste management these wastes are mostly dumped into landfills without being sorted. This study utilizes a system dynamics (SD) approach to examine the feasibility of the reverse logistics implementation in C&D waste management in the long term. The focus material is paper waste, as it is one of the major wastes that can be recycled and remanufactured. The dynamic model consists of three reverse logistics options, including landfill, recycled, and remanufactured options. Costs involved in the implementation are labor, transportation, landfilling, recycling, and remanufacturing costs. Benefits, on the other hand, include sales of recycled and remanufactured products, energy savings, and green image savings. The simulation results reveal that the reverse logistics program should be implemented for at least three years to achieve positive net profit. The implementation should also be continued until the end of year 9 to be worth the investment, with the internal rate of return exceeding 12%.It is also suggested that the recycling and remanufacturing options should be promoted in long term in order to save landfill space and promote green image of the industry

Keywords

• construction and demolition waste
• paper
• reverse logistics
• system dynamics