TITLE:
Linear Activity Analysis of Production for Closed-Loop Businesses—Case Study of a Hungarian Apple Juice Factory
AUTHORS:
Katalin Hartung
KEYWORDS:
Closed-Loop Model, Production Process, Linear Business, Activity Analysis, Waste
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.4 No.5,
May
16,
2016
ABSTRACT: In the context of
closed-loop and integrated production systems Koopmans linear activity analysis
of production provides a relevant method for decision makers. The benefit of
the method is to consider alternative production technologies at a time and
model multiple material flows (inputs and outputs, including waste/pollutants)
as well. In this paper Koopmans theory is proposed for modeling the reduction
of waste in closed loop production processes. The method of linear activity
analysis provides flexibility to measure the amount of waste by setting
limiting constraints justifying the purpose of the model. Based on these
features the method can be used in the future for modeling Blue Economy type of
businesses. The case study of a Hungarian apple juice factory compares the
conventional/linear and the new/closed loop production model. Result in GAMS
software yields notable outcomes for the closed-loop apple juice factory
showing not only the reduction of waste and by-products, but the expansion of
new value-added products and jobs at a profitable level.