Toward Sustainability: A Review of Analytical Models for Circular Supply Chains

Abstract

The earth’s carrying capacity cannot withstand the pace of consumption resulting from current economic models, mainly the linear economy (LE) built on a throwaway culture. In the last few decades, the concept of a circular economy (CE), aiming to design waste out of the economy and mimic ecosystems, emerged as a strong alternative to LE. Being at the heart of the economic landscape, supply chains (SCs) need to respond to the necessary shift to CE. In so doing, the planning and execution of circular supply chains (CSCs) require a broader comprehension of CE and more sophisticated and large-scale analytical decision models. This chapter surveys extant literature on available best practices and quantitative models for sustainable supply chains (SSCs) and offers a new definition of CSC. Mapping on the knowledge extracted from this classification, potential gaps and strengths in the literature are identified. Key research papers on the “closed-loop” and “open-loop” ends of CSCs are highlighted. Challenges in developing CSC performance indicators and prescriptive models are emphasized.