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Impact of Circular Economy and Key Operational Parameters on Steel Supply Chain Performance Under a Dedicated Warehousing Policy: A Multi-Objective Case Study

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  • Mai S. Abdelaziz

    (Department of Mechanical Design and Production, Faculty of Engineering, Cairo University, Giza 12613, Egypt)

  • Tamer F. Abdelmaguid

    (Department of Mechanical Design and Production, Faculty of Engineering, Cairo University, Giza 12613, Egypt)

Abstract

Background : Egypt is one of the top steel producers in the Middle East and Africa, yet it faces acute water scarcity and rising energy costs, making it a critical context for studying trade-offs among carbon emissions, water ecological effects, and operational cost in steel supply chain. Methods : Using a multi-objective optimization model based on real data from a major Egyptian steel manufacturer, this study evaluates trade-offs among cost, tardiness, and environmental impact measured by carbon emissions and water ecological effects. Unlike prior studies, this study demonstrates that dedicated warehousing enables batch-level traceability of returned scrap while reducing material handling travel time and carbon emissions. The AUGMECON method generates Pareto-optimal solutions, and sensitivity analysis is conducted on six parameters: scrap take-back rate, demand variability, raw material price, energy cost, production capacity, and carbon tax. Results : Demand and raw material prices dominate performance: a 5% demand increase raises cost by 8.6%, and a 15% raw material price increase raises cost by 32.7%. The knee-point solution achieves 58.18 billion EGP, 0.99 months tardiness, and 2096 million kg CO 2 over nine months. Conclusions : This study quantifies the impact of the circular economy and operational parameters on steel supply chain performance under a dedicated warehousing policy.

Suggested Citation

  • Mai S. Abdelaziz & Tamer F. Abdelmaguid, 2026. "Impact of Circular Economy and Key Operational Parameters on Steel Supply Chain Performance Under a Dedicated Warehousing Policy: A Multi-Objective Case Study," Logistics, MDPI, vol. 10(6), pages 1-29, June.
    • Handle: RePEc:gam:jlogis:v:10:y:2026:i:6:p:139-:d:1969470
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