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sustainability · circular economy · causal loop diagram

ReCircle Living Circular Economy

Type Causal Loop DiagramStandard Sterman, Business Dynamics (2000)Engine schematex-causalloopUpdated 6/11/2026
ReCircle Living Circular Economy
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The request

“A causal loop diagram for material processing: collected material raises workload and backlog; backlog drives capacity, capacity raises processed material and revenue, and revenue funds capacity investment. Include a processing-capacity balancing loop.”

Then tryAdd a delay to capacity investmentAdd collection quality as a variable
What is in this drawing

Read the decisions behind it.

01

Invest in processing capacity expansion to reduce backlog

02

Balance material collection rates to avoid overwhelming processing

03

Adjust pricing to influence demand and collection volumes

When analyzing the dynamics of a circular economy business model with interconnected operational and market feedback loops.

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