A Plan to Improve Recycled Raw Material Supply in a Production Company of RPET

A Plan to Improve Recycled Raw Material Supply in a Production Company of RPET

Clara Lopez (Universidad del Pacífico, Peru), Franz Jäeger (Universidad del Pacífico, Peru), Karina Ramirez (Universidad del Pacífico, Peru) and Mario Chong (Universidad del Pacífico, Peru)
DOI: 10.4018/978-1-7998-0202-0.ch002

Abstract

The world is facing a problem caused by the management of polyethylene terephthalate (PET) packaging. In the Peruvian context, the studied company is the only local company that has a factory which is able to process post-consumer plastic bottles in order to transform them into recycled resin; this is why it performs a fundamental role. This recycled resin is used for elaborating new packages, generating a circular economy into line with the new global paradigm of switching to a model that seeks to reduce, reuse, and recycle. Finally, it was concluded that the collection center implementation will allow the recycling unit to purchase an average of 76 TN additional annual raw materials. The project would have a cost of US$ 151,383, generating a Net Present Value (NPV) of US$ 144,500 with a 25.9% of Internal Rate of Return (IRR), making it viable in a moderate scenario with a recovery period of five years.
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Literature Review

First of all, there were past work on mainly three topics that are related or proximal to our approach: (1) Green Logistics, (2) Sustainable Logistics and (3) Reverse logistics. For the first case, the works of Qing & Guirong (2012), Lin & Lu (2013), Liu et al. (2017) and Pan, Yu & Li (2017) consider different methods to reduce environmental impacts and pollution improving the logistics component of business (transport, storage, packaging, handling, processing and distributing). For example, Lin & Lu (2013) implements a decision-making model with goal programming to evaluate alternative solutions and select the cost-efficient one that minimize environmental impact at lower business cost; this model, with goal programming, allows the researcher to take into count many objectives in the optimizing objective function and it has been widely used in logistics (For example, Chong, 2018). This Green Logistics examples don’t consider additional dimensions like changes in national legislation that can reduce the environmental impacts of logistics. There are also works that are related to the study of the technical change and innovation that could lead to more efficient and resource-saving logistic technology that also has a positive and saving impact on the environment.

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