Title: 'Recycle versus buy' scenarios in manufacturing strategy decisions: an empirical study

Authors: Shellyanne Wilson

Addresses: Department of Management Studies, The University of the West Indies, St. Augustine Campus, Trinidad

Abstract: This paper examines the 'recycle versus buy' decision-making process, which is becoming a critical decision area for companies operating in the plastics, paper, rubber and metal industries. Via the use of scenario analysis, applied in an in-depth case study that uses plastic buckets for packaging, decision alternatives and uncertainties are considered. The scenario analysis produced nested scenario logics, comprising four bases: volume of used-material collected; cost of used-material collection; cost of virgin material; and performance of new product made with high/low ratio of virgin material to recycled material, resulting in 16 possible scenario combinations. For each combination, market, technical and financial feasibility are examined. For each scenario, a single decision alternative was selected from these four possible decision alternatives: full backward integration, taper integration, partial integration and no integration.

Keywords: manufacturing strategy; decision making; recycle versus buy; scenario analysis.

DOI: 10.1504/IJSOM.2020.109010

International Journal of Services and Operations Management, 2020 Vol.36 No.4, pp.455 - 479

Received: 13 Oct 2017
Accepted: 02 Jun 2018

Published online: 17 Aug 2020 *

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