Reverse logistics has received attentiveness in recent years due to the significance of conserving natural resources and safeguarding the environment by recycling and safe disposal. This study proposes a smart sustainable reverse logistics system framework by implementing the novel IoT technology (SSRLSIoTT) for collecting electronic products from the user locations and delivery at recycling centers toward a circular economy (CE). Formulate an MIQP-based optimization model that helps minimize the cost associated with the SSRLSIoTT by optimizing the number of vehicles assigned, routes for collection, and facility locations within the network and minimizing the carbon emission taxation cost. Implement the exact optimization approach to get better solutions for the proposed model for analysis and decision-making purposes. Obtained results and analysis help government policymakers and business organizations make some policies favoring social, environmental, and economic aspects of sustainability for the nation’s and world’s development.