Integrating circular economy while adopting digital twin for enhancing logistics efficiency: a hybrid Fuzzy Delphi-FUCOM based approach
Muhammad Shoaib, Shengzhong Zhang, Hassan Ali, Muhammad Sarfraz Ahmad, Muhammad Adeel Khan
Abstract
This study integrates both concepts of Circular Economy (CE) and Digital Twin (DT) and uses a hybrid approach to prioritise Digital-based Circular economy potentials for enhancing logistics efficiency. In total, 21 potential factors were identified through literature review and experts’(Eps) responses, categorised into the three main aspects (economic, social, and circular). The Fuzzy Delphi approach (FDA) was used to screen out four factors. Later, the weights of the significant factors were computed using the Fuzzy Full Consistency Method (F-FUCOM). The hybrid approach’s results were validated through sensitivity and comparative analysis. The study proposes a Digital Twin-based Circular Economy framework and technology, organisation, environment (TOE) based taxonomy, providing researchers and policymakers valuable insights for decision-making (DM) to enhance logistics efficiency. The proposed results highlight that critical potentials such as ‘Reverse logistics (P14)’, ‘Operational cost (P1)’, ‘Route optimization (P2)’, and ‘Environmental impact (P15)’ played a significant role in enhancing the efficacy of logistics operations. This study provides the integrated framework that helps the researchers understand and analyse the potentials of digital twin in circular economy and provides insights for industrial managers for its implementation in logistics operations.