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This article presents a bi-objective mixed-integer linear model for the waste management system design. Two types of facilities, landfills and transfer stations (TSs), are identified based on two objectives: minimising the total system's costs and the total negative impact of located facilities on end users as waste generators through a defined pollution decay function. Landfills and TSs are categorised as undesirable facilities due to associated environmental risks. In this article undesirability of a located facility is defined as a two-threshold linear decreasing function of the distance between the end users and the located facility. Also, we considered additional restrictions that no two selected landfills or TSs are within a pre-specified distance from each other, limiting the superimposed pollution generated in these facilities. The model performances are tested on a real-scale example for Vojvodina (Serbia). Results showed that the proposed model has potentials and can be beneficial for government organisations, local authorities and other organisations related to waste management issues.