An automated demand-supply matching (DSM) ranking model for the circular economy

The efficient matching of demanded products, components and materials for re-use and re-manufacturing is paramount for the circular economy. In this paper, we present a model for automated demand-supply matching (DSM) that provides means to rank candidate suppliers according to predefined procurement criteria. Preparing for the acquisition of End-of-life (EoL) products, components, and materials, actors in need of such goods may publish calls for tenders including those criteria. Suppliers can then submit their offerings meeting the needs as stated by one or more calls for tenders. Our automated DSM model evaluates the received offerings based on the procurement criteria to rank suppliers according to each call for tender. Alternatively, suppliers may publish their offerings beforehand, thereby making it possible for demanders to search for matching offerings that meet their needs and to automatically evaluate them using the DSM ranking model. Our basic model takes into account transportation cost, seller reputation and price. We discuss the flexibility of the DSM model in incorporating additional procurement criteria to examine the general applicability of its conceptual design.