On the dynamics of Circular Supply Chains: which factors influence their performance?

In the current global scenario where sustainability and resource efficiency are becoming increasingly important, it is necessary for production and distribution systems to embrace the Circular Economy paradigm and change their approach towards waste and resource usage. This trend has led to the development of Closed-Loop Supply Chains or Industrial Symbiosis networks, among others, as powerful strategies to move towards the Circular Economy. However, the impact on the dynamic behavior of the supply chains of implementing these circular strategies is still unclear. Therefore, our study aims to explore the dynamics of a supply chain where both Closed-loop Supply Chains and Industrial Symbiosis are implemented. More specifically, our study focuses on quantifying the bullwhip effect in such Circular Supply Chain by deriving mathematical equations and formalizing the fluctuations in orders that occur across different levels of the supply chain. This analysis serves to highlight the factors mostly influencing Circular Supply Chains performance.