Circular Economy Strategy Selection Through a Digital Twin Approach

This study investigates the impact of different reverse logistics (RL) strategies on the economic and environmental performance of a system within the rubber flooring sector. A simulation tool was developed to replicate the behavior of a real production system, focusing on the transition from linear to circular processes. By considering multiple factors influencing system performance, this research offers an overview of the sustainability of various RL strategies and provides realistic es-timates for different scenarios. Three key factors were identified to evaluate each strategy’s re-sponse: transportation distance, flooring thickness, and returned flooring quality. The findings suggest that the environmental advantage generally favors on-site inspections at the customer’s location to assess the returned product's condition, regardless of distance. However, centralizing inspections at the manufacturer’s facility is more economically advantageous when distances are short, particularly when the company prioritizes recycling over other CE practices. Based on these results, practical implications and guidelines are proposed to help companies balance cost-effectiveness with sustainability, optimizing their operations within a circular economy framework.