Reverse logistics is one of the adopted supply chain processes and becomes more important because of economic and ecological conditions, administrative and social responsibilities, sustainable development, environment protection laws, and the aim of material and resource use.
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IMPORTANCE OF PACKAGING WASTE RECYCLING PLANTS IN REVERSE
LOGISTICS AND AN ASSESSMENT OF PLANT SELECTION USING THE AHP
METHOD IN TURKEY
Assist Prof Mustafa Gersil
Business Administration Department, Celal Bayar University, Manisa TURKEY
Lecturer Seckin Salvarli, Izmir Vocational School Dokuz Eylul University, IZMIR, TURKEY
ABSTRACT
Reverse logistics is one of the adopted supply chain processes and becomes more important because of economic and ecological conditions, administrative and social responsibilities, sustainable development, environment protection laws, and the aim of material and resource use Recycling is a term that means recyclable waste materials are processed with various recycling methods and prepared to use in manufacturing as raw materials Especially, used materials such as paper, glass, plastics and metals which are called 'packaging waste' are revalued in favour of economic In most of the countries, local authorities are responsible for waste handling issues such as collection, transportation and disposal In relation to waste management, the whole cycle of generation of wastes, their storage, collection and transport, and their eventual treatment and disposal are taken into
condsideration
Izmir, the third largest city in Turkey, consists of the metropolitan municipality and thirty district municipalities According to the proposals and thoughts taken from the authorities of metropolitan municipality and some companies, in the last chapter of this study, an application to choose an appropriate recycling center for packaging waste in Izmir city using the analytic hierarchy process is carried out The software of Expert Choice which supports AHP has provided data to be analyzed statistically and the
results have been given in detail
Key words: AHP, Packaging Waste, Recycling, Reverse Logistic
Trang 2Cite this Article: Assist Prof Mustafa Gersil Importance of Packaging
Waste Recycling Plants in Reverse Logistics and an Assessment of Plant
Selection Using the AHP Method in Turkey International Journal of
Management, 7(1), 2016, pp 109-122
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=7&IType=1
1 INTRODUCTION
What is of interest for logistics activities is its inclusion of forward flow of materials
in the supply chain Yet, as reverse logistics picks reverse flow which commences with the users as its topic of interest, its aim is to ensure the re-usability of products With environmental issues becoming more important lately, the concept of reverse logistics is becoming a focus of attraction As a result of the damage on and the depletion of natural resources and with the growing interest on environment-consciousness, today, demand for reverse logistics-related matters and recyclable
manufacturing systems is also on the rise
In the process of reverse logistics, the importance of the supply chain will be revealed more clearly with the return and recycle of products carried out in a more planned fashion In other words, reverse logistics that concerns issues of effective and efficient re-collection and processing of wastes can be handled differently from waste
management
With the growing importance of environment-related issues, the concept of reverse-logistics, and as a result the issue of recycling are making it to the top of agendas On the other hand, businesses' aspiration to have the competitive upper hand
is another important factor in recycling practices Forward flow of materials in the supply chain is considered among logistics activities whereas the reverse flow that starts from the consumers' end so that the products can be reused concerns reverse logistics Recycling systems and issues pertaining to reverse logistics will naturally become further points of interest as natural sources are damaged and depleted and environment-awareness increased As a result, logistics structures to allow product flow must be set up [Nakıboğlu, G., (2007); Yıldız, D.,(2013) ] As it is known, issues such as product return, re-production, reuse, disposal, repair come under reverse logistics Product returns account for a considerable portion of organizational costs In order for an organization to have the competitive advantage, it will have to reduce costs in product returns and related transportation and storage activities And for that, determination of appropriate recycling locations is important for reverse logistics
networks [Gülsün, B., et al., (2008)]
Benefits of reverse logistics, generally, for businesses can be summarized as follows [Dyckhoff, H., et al., (ed)., (2004 ); Nakıboğlu, G., (2007) ; Yıldız, D.,(2013)
]
Recovery of value: This concerns the recovery of the product, with added value
during its production, that would perish if not reused
Maximization of profit: This when raw material, labor, energy etc costs are reduced
thanks to the recovery of the product
Performance of environmental obligations: All liabilities that are also legally defined
are such as waste recycling, management of hazardous materials, etc
Improvement of management of customer relations: In order to improve customer relations, one must work on issues such as post-sale services and on the provision of
customers with return guarantee, etc
Trang 3In order for products to be recovered and used as input in the economy, there are three processes that reverse logistics focus on and which also relates closely to waste
management These are: reuse, reproduction and recycling [ Setaputra, R., (2005)]
2 REASONS FOR RECYCLING OF PRODUCTS AND REVERSE LOGISTICS
As stated in the respective literature, there are many reasons behind the inclusion of products that are subject to reverse logistics, in the reverse logistics network These reasons are grouped, generally, on the basis of the source that returns the product (on the basis of the supply chain hierarchy comprising of the producer, distributor and the consumer) According to this grouping, returns that take place during production are
referred to as production returns, distributor returns if the return takes place during
the distribution of the product to the consumer and returns by the consumers that are
the users of the final product are referred to as consumer returns In addition to such grouping, there is also producers' recall of the products in cases when an problem
with the product is encountered or when the product is being replaced and also
functional returns arising from the re-usability feature of the product [Rogers, D.S.,
Tibben-Lembke, R., (2001) ; Brito, M.P., et al., ( 2002); Brito, M.P., Dekker, R., ( 2002); Subramaniam, U., et al., (2004)] Moreover, reasons for the return of products
that are subject to reverse logistics are provided in further detail, below:
a Production Returns
Within this scope, issues such as the product being raw material surplus or being
production surplus are specified
b Distributor Returns
Here, four sub-headings that a have been specified, namely as wrong or damaged delivery, products that have expired, stock surplus or unsold products and seasonal
fluctuations, stock adjustments
c Consumer Returns
Reasons in relation to this topic can be listed as return under guarantee, reuse of products after repair, value gains (scrap value and consideration of other recovery options), returns from after-use (such as second hand sales), returns at the end of life-cycle, legal regulations concerning hazardous materials or the customer considering
the product as damaged/deficient
d Producer's Recall of the Products
This reason is defined as the producer's recall of the product for a deficiency, or a
safety or a health related problem in the product
e Functional Returns
Packaging materials that are of reusable quality, containers, pallets, packages, boxes
are under this title
Increased practice of reverse logistics also benefits from businesses' becoming aware of the benefits of product returns in addition to product returns, customer satisfaction or legal conditions mentioned above As stated in the existing literature, these benefits are listed as better relations with customers and partners in the supply
Trang 4chain, considerable cost savings and gains from replacement of the new product with
the used one [(Avitatthur, B., Shah, J., (2004)]
3 SOLID WASTE MANAGEMENT
When classified as per their sources, solid wastes comprise, most generally,
substances such as:
- domestic solid wastes
- domestic wastes
- industrial wastes
- industrial solid wastes
- dangerous wastes
- medical wastes
- special solid wastes
In businesses where Environmental Management System is effectively implemented in parallel to environmental awareness, waste management outcomes are successful As explained in the literature, basic aspects of the Waste management System are specified as follows:
Prevention of wastes especially at the source,
Segregation of wastes generated at the source,
Bringing recyclable wastes back to economy,
Energy recovery,
Reduction of wastes to be stored,
Ensuring the storage of non-recyclable wastes in ways that are not detrimental to the
environment and human health
3.1 Integrated Waste Management System
Volume and composition of wastes are diversified in tandem with fast-increasing population and changing living standards, making control and management of wastes even harder As explained also by Kemirtlek, the issue of solid waste management will become more important, even more complex, both today and in the future considering pollution from solid wastes and the dimensions of existing as well as potential related risks, diminution of natural resources, economic and other reasons It
is for this reason that one must know very well all aspects of an integrated waste management comprising of all stages from the generation of wastes to final disposal,
as well as the their inter-linkages [ Kemirtlek, A., (2007)]
A single approach in this regard might not be sufficient for provision of solutions concerning wastes that are observed to lead to increased problems and impacts on the environment becomes harder At the end of the day, an effective waste management system can be ensured by way of joining all methods This approach named 'Integrated Waste management' has been embraced by all countries All aspects of waste management has been assessed as a whole to develop integrated waste management sustainability of which would be ensured with environmental and economic aspects So, one cannot expect integrated waste management to relate to only a single type of waste or a single source [Waste management Action Plan,
(2008-2012)]
Trang 5In another research, according to White et al., an effective and efficient waste management system in general shall have the features below [White, P.R., et al., (1995)]:
1) It must be an integrated system
Integrate waste management shall be planned in a way that it includes all substances that make up the composition of all wastes generated in a settlement area and all sources of production
2) It must be able to create economic value
Economic values to be reaped from the solid waste management system are recoverable materials, compost and biogas that can be obtained (landfill and anaerobic compost) and inputs from similar sources Revenues to be obtained from these are closely related to market conditions and the cost of the investment that will be made For this reason, the economic analysis must be carried out aptly during the planning stage
3) It must be flexible
Integrated waste management system has to be so flexible as to adapt to various changes that can occur in the environment and in waste characteristics that occur in
relation to time
4) Regional planning has to be carried out
Efficiency of planning depends on the amount of waste to be collected Amount of waste generation, on the other hand, depends on the population It is for this reason that regional planning has to be carried out in settlement areas other than metropolitan areas Some researchers recommend that the population linked to an integrated management should not be less than 500.000 [Waste Management Action Plan,
(2008-2012)]
As a result, integrated waste management is a concept where the appropriate method needed, technology and management programs are selected and applied in connection with the targets Integrated waste management covers issues prescribed in the legislation and comprises of the steps below [Waste Management Action Plan,
(2008-2012)]:
1 Prevention of wastes
2 Reduction of wastes
3 Re-use
4 Recovery/Recycling
5 Pre-process (including incineration)
6 Final disposal
4 AN ASSESSMENT OF THE SELECTION OF A LOCATION FOR A PACKAGING WASTE RECYCLING PLANT IN THE
PROVINCE OF IZMIR
4.1 AHP Management
AHP (Analytical Hierarchy Process) is a model developed by Saaty, a technique used
in the solution of a multi-criteria decision making problem [Saaty, T.L., (1980)] As
Trang 6such, AHP is a mathematical method that can assist in the improvement of the decision-making process by taking into consideration the priorities of the group or the individual and by evaluating qualitative as well as quantitative variables together
Those that work using this method are expected to make more effective decisions 4.2 Literature Survey Concerning the Mathematical Modeling of the Problem Concerning the Selection of a Location
As product returns demonstrate uncertainties in reverse logistics depending on the product itself as well as depending on time, the fact that the network that will be established will have a complicated structure is known to researchers The justification and determination of the location of regional collection centers within the regional network organization that plays an important role within such a complex
structure are important [Kara, K., et al., (2013)]
In literature, there are studies making use of mathematical models concerning the establishment of reverse logistics networks for the establishment of collection centers for the inclusion in the reproduction process or for destruction of many expired products, wastes, products returning from the end consumer, product packages and packs as well as concerning the control of product movements within the scope of the reverse supply chain Majority of these studies are seen to be studies that focus on international and private businesses [For example, Li, R.C., Tee, T.J.C., (2012); Dat,
L.Q., et al., (2012)]
The aim is to determine a location by way of handling the issue as to the locality
of special collection centers within a mathematical process With this aim in view, a study to optimize the determination of location for solid waste recycling plants shall
be carried out using the AHP model
4.3 Implementation
In this study, an assessment has been carried out to determine the district that would
be the most appropriate for the establishment of a package waste recycling center in the province of İzmir has been carried out with a consideration for the AHP method There are 30 districts within the remit of the İzmir metropolitan municipality and these districts have been compared and contrasted against different criteria that have been determined in order to decide on the most appropriate location Accordingly, in line with the solid waste master plan, the province of İzmir has been handled as two regions (North and South - Table 1) and then an aggregation has been performed to
evaluate alternative provinces [Waste management Action Plan, (2008 2012)]
Table 1 The Structure of the İzmir Association Izmir Bayındır Beydağ Çeşme Karaburun Kemalpaşa
Kiraz Menderes Ödemiş Seferihisar Selçuk
Izmir Aliağa Balçova Bayraklı Bergama Bornova
North Güzelbahçe Karabağlar Karşıyaka Kınık Konak
Trang 7Information available n the literature (Table 2, Table 3 and Table 4) as well as views obtained from respective authorities in public and private bodies including the, firstly, the İzmir metropolitan municipality have been have been widely used in the determination of the criteria that effect the selection of the location of the recycling plant [Waste Management Action Plan, (2008 - 2012); TURKSTAT, (2012a); MoEU,
(2014)]
Table 2 Municipal Waste Basic Indicators, 2012
Total Population in Adress based Population Registration System 75 627 384
The Number of Municipalities served by Municipal Waste Services 2 894
Population of Municipalities served by Municipal Waste service 63 105 474
Rate of Population served by Municipal Waste Services in Total
Rate of Population Served by Municipal Waste Services in Total
Amount of Municipal Waste Collected (Thousad tonnes/Year) 25 845
Amount of Municipal Waste Per Capita (Kg/Capita-day) 1.12
SUMMER SEASON
Amount of Municipal Waste (Thousand tonnes/Summer) 14 615
Amount of Municipal Waste (Thousand tonnes/day) 72
Amount of Municipal Waste Per Capita(Kg/Capita-day) 1.14
WINTER SEASON
Amount of Municipal Waste (Thousand tonnes/Winter) 11 229
Amount of Municipal Waste (Thousand tonnes/day) 68
Amount of Municipal Waste Per Capita(Kg/Capita-day) 1.09
The Medhods of Waste Disposal And Quantities
Waste Disposal Facilities
Rate of Population Served by Waste Disposal and
Recovery Facilities in Total Municipal Population (%) 64
Rate of Population Served by Waste Disposal and
Recovery Facilities in Total Municipal Population (%)
54
Source: TURKSTAT, 2012a
Trang 8Table 3 Figurative Indicators from the Districts of İzmir
Rate of
Population
Served by Waste
Disposal and
Recovery
Facilities in
Total Municipal
Population
Amount of solids collected by Municipalies and others
Amount of solid waste collected per person
Total municipal population
Total environmental expenditures
Waste management service expenditures
(%) (ton/yr)
(kg/person-day) (thousand) (mio TRY) (mio TRY) Aliağa 100 28 706 1,38 77 4,4
Balçova 100 49 870 1,76 78 6,4
Bayındır 100 9 460 1,11 41 1,7
Bayraklı 100 115 650 1,03 309 12,2
Bergama 100 23 278 0,93 101 2,1
Beydağ 100 4 743 2,28 13 0,45
Bornova 100 152 685 1,01 423 15,8
Buca 100 160 346 1,05 446 14
Çeşme 97 37 022 3,52 35 3
Çiğli 100 38 930 0,68 169 15
Dikili 100 19 448 2,43 35 0,8
Foça 100 12 251 0,83 32 0,47
Gaziemir 100 43 276 0,91 128 4,2
Güzelbahçe 100 10 345 1,23 28 0,61
Karabağlar 100 256 276 1,53 466 17,8
Karaburun 100 10 360 4,77 9 1,7
Karşıyaka 100 102 180 0,9 315 18
Kemalpaşa 100 45 990 1,76 95 2,8
Kınık 99 14 843 2,13 28 1,7
Kiraz 100 2 981 0,95 44 1,9
Konak 100 226 865 1,53 391 17,7
Menderes 100 53 600 2,65 75 6,5
Menemen 95 62 554 1,51 138 3,04
Narlıdere 100 17 155 0,65 63 4,7
Ödemiş 100 38 850 1,12 129 20,6
Seferihisar 100 15 717 1,47 31 6,8
Selçuk 95 20 941 2,01 35 4
Tire 100 33 520 1,7 80 7
Torbalı 100 36 500 0,86 138 2,9
Urla 100 26 780 1,62 55 4,3
Source: TURKSTAT, 2012b
Trang 9Table 4 Distribution of Establishments Licensed/with Permit in İzmir, 2014
Districts
Collection-Segregation
Businesses
Packaging Waste Recovery Businesses
Non-hazardous Waste Recovery Businesses
Metal-Scrap Processing Businesses
Recovery Companies
Aliağa - 1 - 2 -
Bergama 1 - - - -
Bornova 9 7 14 3 143
Çiğli 3 4 4 - 11
Gaziemir 3 1 1 - 5
Karabağlar - - - - 14
Karşıyaka - - - - 16
Kemalpaşa 3 2 2 - 5
Konak - - - - 37
Menderes - 5 7 - 10
Menemen 1 - - - -
Torbalı 3 3 6 - -
Source: MoEU, 2014
In this way, criteria that are of importance in the selection of the location of the center have been determined as environmental factors, technical and economical factors and socio-cultural factors With the help of existing data, that the sub-criteria that have an impact on the main criteria specified have been considered to be environmental expenditures, land and development status, proximity to main roads, proximity to existing recovery plants, proximity to transfer/storage facilities, logistics and service costs, amount of collected waste and the average amount of waste per population and per capita; and thus 30 provinces in İzmir have been compared It is known that in order for waste management to be efficient, the amount of waste to be collected depends on the population And since administrative, financial and technical capacities become more important in waste recovery activities, districts with a population of 50.000 with low amounts of waste have not been taken into consideration in the selection of the location of the package waste recycling plant [ Waste Management Action Plan ( 2008 - 2012) ] Districts that have not been included in the study compose 9% and 8% of the total amount of waste that is applicable for İzmir and the population served, respectively On the other hand, districts Bayraklı , Bornova , Buca , Karabağlar , Karşıyaka and Konak comprise 60% and 59% of the total amount of waste that is applicable for İzmir and the population served, respectively For this reason, in the study concerning the determination of the package waste recycling plant, districts Bayındır , Beydağ , Çeşme , Dikili , Foça , Güzelbahçe , Karaburun , Kınık , Kiraz , Seferihisar and Selçuk have been excluded from among the alternatives and the selection has been made from among the
remaining 19 districts
The objective, main criteria, sub-criteria and alternatives have been demonstrated
in Table 5 Within this framework, Expert Choice 11 package program was used to
establish the hierarchical structure
Trang 10Table 5 The Hierarchical Structure Established for the Selection of the Location of the
Packaging Waste Recycling Plant in the Province of Izmir Objective Selection of the Location of the Packaging Waste Recycling Plant
Main Criteria Environmental Factors Technical and Economic Factors Socio-cultural Factors
Sub-criteria
Environmental
Expenditures
Proximity to the Existing Recovery
Companies
Amount of Waste
Collected
Land and Development
Status
Proximity to Transfer/Storage
Facilities Population
Proximity to Main Roads Logistics and Service Costs
Average Amount of
Waste per Capita
Alternatives
Aliağa,Balçova , Bayraklı
Aliağa,Balçova , Bayraklı
, Bergama , Bornova , Buca Bergama , Bornova , Buca Bergama , Bornova , Buca
Çiğli , Gaziemir ,
Karabağlar Çiğli , Gaziemir , Karabağlar
Çiğli , Gaziemir ,
Karabağlar
Karşıyaka , Kemalpaşa ,
Konak Karşıyaka , Kemalpaşa , Konak Karşıyaka , Kemalpaşa , Konak Menderes , Menemen Menderes , Menemen Menderes , Menemen Narlıdere , Ödemiş , Tire Narlıdere , Ödemiş , Tire Narlıdere , Ödemiş , Tire
Diagram 1 The Overview of the Analytic Hierarchy Process Structure Used in the Study