Title:
CIRCULAR ECONOMY APPROACH TO ARTISAN SOAP PRODUCTION: LOGISTICS AND FINANCIAL FEASIBILITY USING RECYCLED COOKING OIL

Authors:
Fabiola Sánchez-Galván, Azalia Guadalupe Melo Azuara, Carmen Karelly Pro-Torres and Karla Lissette Silva-Martínez

Abstract:
This study presents a circular economy approach to artisan soap production using recycled cooking oil as the primary raw material. The business model was developed under the CANVAS framework and integrated with quantitative optimization methods to design an efficient supply chain. The p-median method and the Capacitated Vehicle Routing Problem (CVRP) were applied to identify optimal collection points and minimize travel distances in the logistics process. Financial feasibility was assessed through an analysis of initial investment, production costs, selling price, and profit margins. Results indicate that the model is technically viable, economically profitable, and environmentally sustainable, with a return on investment (ROI) achieved in approximately five months. This integrated approach demonstrates how waste valorization can contribute to sustainable entrepreneurship, local economic development, and environmental conservation, highlighting its potential for replication in other regions

Keywords:
Circular economy, Optimization, Sustainability, Sustainable supply chains.

DOI:
https://doi.org/10.37500/IJESSR.2025.8425

Date of Publication: 28-08-2025