IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v93y2016icp358-371.html
   My bibliography  Save this article

Cost-effective pallet management strategies

Author

Listed:
  • Roy, Debjit
  • Carrano, Andres L.
  • Pazour, Jennifer A.
  • Gupta, Akash

Abstract

The existing industry strategies for managing pallets, (single-use expendable pallets, buy/sell programs, and leased pallet pooling programs), are analyzed and compared using push and pull inventory control policies. A two-stage integrated framework is developed that combines cost relationship models with data gathered in industry with multi-echelon inventory performance measures. For the base case, the single-use expendable pallet approach presents the least cost of all strategies, but the leased pallet pooling programs outperform the buy/sell programs in terms of total cost. The intervals where each strategy is most attractive are shown with respect to pallet cost, salvage cost, dwell fees, effective issue fees, retention rates, and transportation costs.

Suggested Citation

  • Roy, Debjit & Carrano, Andres L. & Pazour, Jennifer A. & Gupta, Akash, 2016. "Cost-effective pallet management strategies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 358-371.
    • Handle: RePEc:eee:transe:v:93:y:2016:i:c:p:358-371
    DOI: 10.1016/j.tre.2016.06.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554515301460
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2016.06.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. A. Mazeika Bilbao & A.L. Carrano & M. Hewitt & B.K. Thorn, 2011. "On the environmental impacts of pallet management operations," Management Research Review, Emerald Group Publishing Limited, vol. 34(11), pages 1222-1236, October.
    2. Rochelle Duhaime & Diane Riopel & André Langevin, 2001. "Value Analysis and Optimization of Reusable Containers at Canada Post," Interfaces, INFORMS, vol. 31(3), pages 3-15, June.
    3. Dong, Jing-Xin & Song, Dong-Ping, 2009. "Container fleet sizing and empty repositioning in liner shipping systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(6), pages 860-877, November.
    4. Ram, Balasubramanian, 1992. "The pallet loading problem: A survey," International Journal of Production Economics, Elsevier, vol. 28(2), pages 217-225, November.
    5. Gaël Raballand & Enrique Aldaz‐Carroll, 2007. "How Do Differing Standards Increase Trade Costs? The Case of Pallets," The World Economy, Wiley Blackwell, vol. 30(4), pages 685-702, April.
    6. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    7. Elia, Valerio & Gnoni, Maria Grazia, 2015. "Designing an effective closed loop system for pallet management," International Journal of Production Economics, Elsevier, vol. 170(PC), pages 730-740.
    8. Carrano, Andres L. & Pazour, Jennifer A. & Roy, Debjit & Thorn, Brian K., 2015. "Selection of pallet management strategies based on carbon emissions impact," International Journal of Production Economics, Elsevier, vol. 164(C), pages 258-270.
    9. Wang, Hunglin & Hsu-Pin (Ben) Wang, 1991. "Optimum number of kanbans between two adjacent workstations in a JIT system," International Journal of Production Economics, Elsevier, vol. 22(3), pages 179-188, December.
    10. Choong, Sook Tying & Cole, Michael H. & Kutanoglu, Erhan, 2002. "Empty container management for intermodal transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(6), pages 423-438, November.
    11. Li, Jing-An & Leung, Stephen C.H. & Wu, Yue & Liu, Ke, 2007. "Allocation of empty containers between multi-ports," European Journal of Operational Research, Elsevier, vol. 182(1), pages 400-412, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jianwei Ren & Qingqing Zhao & Bo Liu & Chunhua Chen, 2019. "Selection of pallet management strategies from the perspective of supply chain cost with Anylogic software," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-18, June.
    2. Fabiana Tornese & Maria Grazia Gnoni & Brian K. Thorn & Andres L. Carrano & Jennifer A. Pazour, 2021. "Management and Logistics of Returnable Transport Items: A Review Analysis on the Pallet Supply Chain," Sustainability, MDPI, vol. 13(22), pages 1-23, November.
    3. Liu, Guoquan & Li, Lei & Chen, Jianghang & Ma, Fei, 2020. "Inventory sharing strategy and optimization for reusable transport items," International Journal of Production Economics, Elsevier, vol. 228(C).
    4. Ivan Deviatkin & Musharof Khan & Elizabeth Ernst & Mika Horttanainen, 2019. "Wooden and Plastic Pallets: A Review of Life Cycle Assessment (LCA) Studies," Sustainability, MDPI, vol. 11(20), pages 1-17, October.
    5. Lehner, Roland, 2023. "Cross-Supply Chain Collaboration Platform for Pallet Management," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 138753, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Hao Yu & Jiaqi Yang & Xipei Kang & Zhe Cong & Siwei Yao, 2022. "Empty Pallet Allocation Optimization in Shipbuilding Using a Pallet Pool System," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    7. Jianwei Ren & Chunhua Chen & Jian Gao & Chenxi Feng, 2020. "An optimization model for fleet sizing and empty pallet allocation considering CO2 emissions," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-16, February.
    8. Dowan Kim & Joungdae Kim & Chaegun Phae, 2023. "Analysis of Lifespan of Plastic Pallets and Containers in Korea Using Probability Density Function (PDF)," Sustainability, MDPI, vol. 15(11), pages 1-11, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabiana Tornese & Maria Grazia Gnoni & Brian K. Thorn & Andres L. Carrano & Jennifer A. Pazour, 2021. "Management and Logistics of Returnable Transport Items: A Review Analysis on the Pallet Supply Chain," Sustainability, MDPI, vol. 13(22), pages 1-23, November.
    2. Mahmoudi, Monirehalsadat & Parviziomran, Irandokht, 2020. "Reusable packaging in supply chains: A review of environmental and economic impacts, logistics system designs, and operations management," International Journal of Production Economics, Elsevier, vol. 228(C).
    3. Najafi, Mehdi & Zolfagharinia, Hossein, 2021. "Pricing and quality setting strategy in maritime transportation: Considering empty repositioning and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 240(C).
    4. Song, Dong-Ping & Dong, Jing-Xin, 2012. "Cargo routing and empty container repositioning in multiple shipping service routes," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1556-1575.
    5. Jianwei Ren & Qingqing Zhao & Bo Liu & Chunhua Chen, 2019. "Selection of pallet management strategies from the perspective of supply chain cost with Anylogic software," PLOS ONE, Public Library of Science, vol. 14(6), pages 1-18, June.
    6. Jianwei Ren & Chunhua Chen & Jian Gao & Chenxi Feng, 2020. "An optimization model for fleet sizing and empty pallet allocation considering CO2 emissions," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-16, February.
    7. Jia Shu & Miao Song, 2014. "Dynamic Container Deployment: Two-Stage Robust Model, Complexity, and Computational Results," INFORMS Journal on Computing, INFORMS, vol. 26(1), pages 135-149, February.
    8. Xing, Xinjie & Song, Dongping & Qiu, Chengfeng & Drake, Paul R. & Zhan, Yuanzhu, 2023. "Joint tank container demurrage policy and flow optimisation using a progressive hedging algorithm with expanded time-space network," European Journal of Operational Research, Elsevier, vol. 307(2), pages 663-679.
    9. Riccardo Accorsi & Giulia Baruffaldi & Riccardo Manzini & Chiara Pini, 2019. "Environmental Impacts of Reusable Transport Items: A Case Study of Pallet Pooling in a Retailer Supply Chain," Sustainability, MDPI, vol. 11(11), pages 1-13, June.
    10. Wang, Hua & Wang, Shuaian & Meng, Qiang, 2014. "Simultaneous optimization of schedule coordination and cargo allocation for liner container shipping networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 261-273.
    11. Liu, Cong & Jiang, Zhibin & Liu, Liming & Geng, Na, 2013. "Solutions for flexible container leasing contracts with options under capacity and order constraints," International Journal of Production Economics, Elsevier, vol. 141(1), pages 403-413.
    12. Yi Zhao & Qingwan Xue & Xi Zhang, 2018. "Stochastic Empty Container Repositioning Problem with CO 2 Emission Considerations for an Intermodal Transportation System," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    13. Carrano, Andres L. & Pazour, Jennifer A. & Roy, Debjit & Thorn, Brian K., 2015. "Selection of pallet management strategies based on carbon emissions impact," International Journal of Production Economics, Elsevier, vol. 164(C), pages 258-270.
    14. Elia, Valerio & Gnoni, Maria Grazia, 2015. "Designing an effective closed loop system for pallet management," International Journal of Production Economics, Elsevier, vol. 170(PC), pages 730-740.
    15. Song, Dong-Ping & Dong, Jing-Xin, 2011. "Effectiveness of an empty container repositioning policy with flexible destination ports," Transport Policy, Elsevier, vol. 18(1), pages 92-101, January.
    16. Myung, Young-Soo & Yu, Yung-Mok, 2020. "Freight transportation network model with bundling option," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    17. Lehner, Roland, 2023. "Cross-Supply Chain Collaboration Platform for Pallet Management," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 138753, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    18. Jingyao Song & Xin Tang & Chuanxu Wang & Changyan Xu & Junyi Wei, 2022. "Optimization of Multi-Port Empty Container Repositioning under Uncertain Environments," Sustainability, MDPI, vol. 14(20), pages 1-16, October.
    19. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    20. Jeong, Yoonjea & Saha, Subrata & Chatterjee, Debajyoti & Moon, Ilkyeong, 2018. "Direct shipping service routes with an empty container management strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 123-142.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:93:y:2016:i:c:p:358-371. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.