An evaluation model for introducing the RVM effect for plastic bottle recycling firms

Recently, plastic bottle recycling firms in Japan are faced with the problem of instability in the procurement volumes of used plastic bottles during the bidding. On the other hand, there are many cases where used plastic bottles are collected using the reverse vending machine (RVM). Used plastic bottles that have been collected by RVMs are sent directly to recycling firms and recycled by the recycling firms. Therefore, RVMs provide more stable volumes when procuring used plastic bottles, and this process is more profitable for recycling firms as compared to the bidding process. We propose an evaluation model for introducing the RVM effect for plastic bottle recycling firms. At first, we construct a decision model for the bidding volume of the recycling firm, which incorporates three uncertainties the firm is facing. Then, we calculate the effect of introducing RVMs using the difference between values with/without RVMs. We show that there is a higher uncertainty for procurement volume when using the bidding process than there is if RVMs are introduced. As a result, we provide effective strategies for decision making regarding the procurement of RVMs.