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Optimisation of a Collection and Recovery Network of Used Tyres

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Optimisation of a Collection and Recovery Network of Used Tyres Optimisation of a collection and recovery network of used tyres Valorpneu case-study Mariana da Cruz Teixeira Dissertation to obtain the Master of Science Degree in Industrial Engineering and Management Supervisors: Prof. Ana Paula Ferreira Dias Barbosa Póvoa Prof. Bruna Alexandra Elias Mota Examination Committee Chairperson: Prof. Susana Isabel Carvalho Relvas Supervisor: Prof. Bruna Alexandra Elias Mota Members of the Committee: Prof. Maria Isabel Azevedo Rodrigues Gomes November 2019 i Acknowledgments Firstly, I would like to manifest my gratitude to my advisors Prof. Ana Póvoa and Prof. Bruna Mota for giving me the opportunity to work with them and especially for all the guidance, support and knowledge shared throughout this work. Thank you for your readiness in always answering my questions and for helping me find my way whenever I was lost. Secondly, a special thank you to Valorpneu especially to Drª. Climénia Silva, Eng.ª Dora Gervásio and Eng.º Paulo Silva for their availability and for all the information provided essential to the completion of this study. To my family and friends, for always supporting and believing in me, thank you. Acknowledgments to the Portuguese National Science Foundation (FCT) for PTDC/EGE- OGE/28071/2017 Portugal 2020 for Project LISBOA‐01‐0145‐FEDER‐028071 by UE/FEDER/FNR/OE. ii Abstract The number of used tyres reaching their end of life is increasing every year which demonstrates the importance of an efficient and sustainable system that guarantees the correct collection and recovery of this waste flow. The implementation and management of such systems is a challenging task involving both the management of complex network’s flows between the different operators and the design and planning of the network itself. The problem addressed in the present study is concerned with this last issue where the goal is to determine the correct location and number of the collection centres in order to ensure the collection of used tyres from its sources. Additionally, these decisions must consider the economic, environmental and social sustainability of the network considering different and potentially opposing objectives. To solve this problem, a decision supporting tool for the design and planning of this network was developed considering the three dimensions of sustainability. This tool is based on a multi-objective mixed integer linear programming model, which intends to minimize the network’s logistics costs and environmental impact and maximize its social benefit. The model developed is tested under a real set considering the Valorpneu’s network. The results obtained serve as baseline to compare and evaluate possible improvements concerning the three dimensions of sustainability. Different scenarios are tested revealing that the districts of Oporto, Aveiro, Santarém and Lisbon are promising districts for opening collection centres. The critical parameters are subject to sensibility analysis to test the robustness of the results obtained. Keywords: Used tyres, Reverse Logistics, Network Design and Planning, Optimisation, Sustainability iii Resumo O número de pneus em fim de vida tem vindo a aumentar a nível mundial nos últimos anos revelando a importância de um sistema que gere este fluxo de maneira eficiente e sustentável garantindo a sua recolha e valorização. A implementação destes sistemas é complexa envolvendo não só a gestão dos fluxos entre as diferentes entidades da rede como também o projeto e planeamento da própria rede. O problema tratado neste estudo prende-se com este último ponto, onde se pretende determinar a correta localização e número dos centros de recolha garantindo que os pneus usados são eficientemente recolhidos. Para além disso, estas decisões devem ser tomadas tendo em conta a sustentabilidade económica, ambiental e social da rede, tratando-se assim de um problema com objetivos distintos e potencialmente contrastantes. Para a resolução deste problema, uma ferramenta de apoio à decisão para a definição e planeamento desta rede, considerando aspetos económicos, ambientais e sociais foi desenvolvida. Esta ferramenta baseia-se num modelo de programação linear inteira mista, multi-objetivo, e pretende minimizar os custos logísticos e impacto ambiental e maximizar o benefício social da rede. Na validação, o modelo desenvolvido foi aplicado à rede atual. Este resultado serviu de base de comparação para avaliação das melhorias obtidas nos pilares da sustentabilidade. Diferentes cenários foram também estudados revelando como principais pontos de interesse para a abertura de novos centros de receção os distritos do Porto, Aveiro, Santarém e Lisboa. Uma análise de sensibilidade foi feita aos parâmetros críticos para testar a robustez dos resultados obtidos. Palavras-chave: Pneus Usados, Logística Inversa, Definição e Planeamento de Rede, Otimização, Sustentabilidade iv 1 Contents Acknowledgments ................................................................................................................................................. ii Abstract .................................................................................................................................................................. iii Resumo .................................................................................................................................................................. iv List of Figures ...................................................................................................................................................... viii List of Tables ......................................................................................................................................................... ix List of Abbreviations ............................................................................................................................................. xi 1 Introduction ................................................................................................................................................... 1 1.1 Contextualisation ................................................................................................................................. 1 1.1.1 Sustainable Development and Circular Economy ...................................................................... 1 1.1.2 The Used Tyre’s Context ............................................................................................................... 1 1.1.3 Problem Description ....................................................................................................................... 3 1.2 Objectives ............................................................................................................................................ 3 1.3 Structure .............................................................................................................................................. 3 1.4 Methodology ........................................................................................................................................ 4 2 The Case-study ............................................................................................................................................. 6 2.1 Valorpneu ............................................................................................................................................. 6 2.2 Used Tyres Management Integrated System .................................................................................. 6 2.2.1 Producers ........................................................................................................................................ 8 2.2.2 Holders ............................................................................................................................................. 8 2.2.3 Collection Centres .......................................................................................................................... 9 2.2.4 Carriers .......................................................................................................................................... 12 2.2.5 Retread Manufacturers ................................................................................................................ 12 2.2.6 Shredder Operators ..................................................................................................................... 12 2.2.7 Recycling and Energy Recovery Operators .............................................................................. 12 2.3 Problem Characterization ................................................................................................................ 13 3 Literature Review ........................................................................................................................................ 15 3.1 Supply Chain ..................................................................................................................................... 15 3.1.1 Supply Chain Management ......................................................................................................... 15 3.1.2 Reverse Logistics .......................................................................................................................... 16 3.1.3 Sustainable Supply Chain............................................................................................................ 19 3.2 Supply Chain Design and Planning ...............................................................................................
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