Feasibility study of reverse logistic of steel waste in the construction industry

Abstract

Construction and demolition (C&D) waste are increasing due to population and economic growth. Most of C&D waste materials, including steel waste, can be managed with the reverse logistics (RL), including directly reuse, recycling, and remanufacturing. However, most waste is dumped into landfills which cause environmental problems. This study examines the implementation of reverse logistics of steel waste in the construction industry utilizing a system dynamics approach. The dynamic model consists of six sub-models. The simulation results reveal that in the initial years, the net profit value of the RL implementation program is negative due to high investments in labors, trucks, and machines. It takes five years for the net profit to be positive, and eight years to achieve the internal rate of return of 12%. The construction company can use the developed dynamic model as a guideline to better understand RL implementation and plan for better implementation programs.

Keywords

• construction industry
• feasibility study
• reverse logistics
• steel
• waste