A quantitative framework for Industry 4.0 enabled Circular Economy

Abstract

Sustainability and digital transformation represent two of the main trends of the last decade. More in detail, Industry 4.0 (I4.0) and Circular Economy (CE) are two key concepts that are characterizing the present and that will shape the future. From the extant literature review emerges that, although academics identify a possible synergy between these topics, a concrete integrated framework able to achieve CE at systemic level is still missing. The objective of this research is to put in relation the I4.0 and CE paradigms to understand the link between the two topics and envisage a new framework focused on circularity among supply chains. Therefore, a systematic literature review on CE, I4.0 and on their mutual relationship have been conducted to investigate which are the synergies and how the new I4.0 technologies support the implementation of CE at supply chains network level. Hence, a framework in which I4.0 technologies support the adoption of Reduce, Redesign, Recycling and Remanufacturing strategies has been developed. Indeed, starting from the 6Rs’ model (Reduce, Reuse, Recycle, Recover, Redesign, Remanufacture), the focus has been shifted towards these 4Rs since they have been considered the most affected by I4.0. Regarding the use of I4.0 technologies, Cloud Manufacturing (MaaS) and Additive Manufacturing have been deemed the most enabling technologies. Indeed, they allow to respectively aggregate resources and reduce wastes. The framework is supported by a quantitative analysis of economic and environmental impacts that results in the definition of a Multi-Objective Integer Linear Programming (MOILP). The framework works in closing the loop by acting as strategic node able to link different supply chains. It has been developed focusing on discrete manufacturing and replicable in different sectors. Finally, the model identified has been supported by some pilot assessments through semi-structured interviews.

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