Decision-making is a crucial process within the circular supply chain, where sustainability and resource efficiency are prioritized throughout a product’s life cycle. This study explores decision-making models in circular supply chain management (CSCM), emphasizing how digital technologies and life cycle assessments (LCA) can optimize the process. The integration of these tools enables informed decisions, helping organizations to reduce waste, manage resources, and promote closed-loop systems. Critical factors such as supplier selection, product design, reverse logistics, and inventory management are examined to show how they influence sustainable operations. The paper also highlights the importance of collaboration between stakeholders, the use of digital technologies like IoT and blockchain, and compliance with regulatory requirements to support circular practices. These decision-making models aim to enhance the overall performance of the circular supply chain by promoting recycling, reusability, and reducing environmental impact.