Implications of changing the base raw material – the case of license plate manufacturing

Abstract

License plates to uniquely identify vehicles mainly use aluminum as the base material. Currently, there is no distinction of different use cases of license plates, such as short-time usage for test drive and transportation purposes that do not need such long-lasting materials not only from cost but also from sustainability perspectives. This paper presents a methodology to select the best material for different use cases under the holistic consideration of specifically defined criteria as to material properties, sustainability aspects, and supply chain implications. We show that there are several candidate materials for different use cases that stick out by changing the importance of these numerous criteria. In addition, the paper delves deeper into the sustainability aspect by means of a comprehensive System Dynamics model. We show that a scenario in which the company picks up used license plates by relying on a logistics service provider to get them delivered to an external recycling service provider yields the best results.