Extended Producer Responsibility in the Apparel Industry: An Agent-Based Simulation Incorporating Physical and Emotional Product Durability

Document Type : Research Paper

Authors

1 Ph.D. Candidate in Industrial Management, Department of Management, Faculty of Administrative Sciences and Economic, University of Isfahan, Isfahan, Iran.

2 Associate Prof., Department of Management, Faculty of Administrative Sciences and Economic, University of Isfahan, Isfahan, Iran.

10.22059/imj.2025.395722.1008247

Abstract

Objective: This study examines the impacts of Extended Producer Responsibility (EPR) on product life extension and market dynamics. It investigates the relationship between the physical and emotional durability of products in the apparel supply chain, highlighting the importance of the secondary market in prolonging product life and value. By understanding the connections among producers, consumers, and the secondhand market, the study aims to develop a practical approach that helps planners derive optimal synergistic solutions, considering the needs of consumers, ecological considerations, and the economic factors within the apparel market.
Methods: The interactions among consumers, producers, and the government are demonstrated through agent-based simulations across five scenarios. The market includes various groups of consumers to represent its heterogeneous nature. The simulation, conducted in NetLogo, models the behavior of both producers and buyers in the context of government intervention.
Results: Simulation results indicate that EPR policies, combined with government interventions such as incentives, penalties, and regulations, can effectively promote the management of products at the end of their life cycle. In scenarios that utilized incentives, producers were more likely to buy and sell secondhand products, reducing the production of new items and increasing recycling rates. These results underscore the critical importance of collaboration among the government, the public, and producers to implement EPR policies successfully.
Conclusion: Effective implementation of EPR policies requires government market intervention calibration. When the government applies a reward-and-penalty system to enforce EPR, product waste is reduced, and producer profitability surpasses other scenarios.

Keywords

References

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Industrial Management Journal
Volume 17, Issue 3
2025
Pages 161-179

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