System Dynamics Modeling of the Jute Stick Charcoal (JSC) Supply Chain: Logistics and Policy Strategies for Sustainable Rural Industrialization in Bangladesh

<i>Background</i>: Jute, recognized as the ‘golden fiber’ of Bangladesh, produces a substantial amount of stick left over (waste), a byproduct of the fiber. Usually, unused jute sticks (JS) are thrown away or burned, since they are treated as landfill or unusable waste. Noteworthy research gaps exist in the farming process, infrastructure, [supply chains], unfavorable policies, government interference, and insufficient farmers’ knowledge of the export market. This research examines the potential of jute stick charcoal (JSC) as a sustainable and value-added product within the circular economy framework. <i>Methods</i>: This study employs a system dynamics (SD) modeling approach to examine how various factors, including agricultural output, supply chain process efficiency, trade flows, and relevant variables, influence JSC supply chain performance. Considering technologies, logistics, and policy variables, this study constructed a simulation model with three scenarios: current, worst-case, and improved, using Vensim DSS to identify system behavior under changing conditions. <i>Results:</i> The simulation indicates that optimizing idle jute resources, enhancing supply chain processes, and expanding markets can increase economic returns, reduce waste, and create more rural jobs, particularly for women. <i>Conclusions</i>: Enhanced coordination, technologies, and logistics can reduce carbon emissions, benefit farmers, support rural industries, and contribute to SDGs 8, 12, and 13.