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Value Analysis and Optimization of Reusable Containers at Canada Post

Author

Listed:
  • Rochelle Duhaime

    (Supply-Chain Management, Canada Post Corporation, 2701 Riverside Drive, Suite N0176, Ottawa, Ontario, Canada K1A 0B1)

  • Diane Riopel

    (Department of Mathematics and Industrial Engineering, Ecole Polytechnique de Montréal, P.O. Box 6079, Succursale Centreville, Montréal, Quebec, Canada H3C 3A7)

  • André Langevin

    (Department of Mathematics and Industrial Engineering, Ecole Polytechnique de Montréal)

Abstract

We analyzed the use and sharing of a logistics package, a returnable container, often out of stock, between Canada Post and its large mailing customers. Standardizing and sharing logistical packaging should bring members of a supply chain tangible benefits from productivity and efficiency gains. We determined that inventory imbalance between supply locations and demand locations caused the problem. We found that different accounting methods gave very different results in calculating the benefits. We concluded that there is always a benefit for the mailer. For Canada Post to benefit, however, the container must be returned quickly. We used a minimum-cost-flow model to confirm that the company has enough containers to satisfy demand. With better planning and control of the inventory, Canada Post can prevent disequilibrium between supply and demand.

Suggested Citation

  • 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.
    • Handle: RePEc:inm:orinte:v:31:y:2001:i:3:p:3-15
    DOI: 10.1287/inte.31.3.3.9636
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    Citations

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    Cited by:

    1. Yanlu Guo & Gongli Luo & Guisheng Hou, 2021. "Research on the Evolution of the Express Packaging Recycling Strategy, Considering Government Subsidies and Synergy Benefits," IJERPH, MDPI, vol. 18(3), pages 1-25, January.
    2. Iassinovskaia, Galina & Limbourg, Sabine & Riane, Fouad, 2017. "The inventory-routing problem of returnable transport items with time windows and simultaneous pickup and delivery in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 570-582.
    3. Zhang, Qinhong & Segerstedt, Anders & Tsao, Yu-Chung & Liu, Biyu, 2015. "Returnable packaging management in automotive parts logistics: Dedicated mode and shared mode," International Journal of Production Economics, Elsevier, vol. 168(C), pages 234-244.
    4. Sebastjan Škerlič & Robert Muha, 2020. "A Model for Managing Packaging in the Product Life Cycle in the Automotive Industry," Sustainability, MDPI, vol. 12(22), pages 1-19, November.
    5. 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.
    6. de Brito, M.P. & de Koster, M.B.M., 2003. "Product Return Handling," ERIM Report Series Research in Management ERS-2003-013-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    7. 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).
    8. Carrasco-Gallego, R. & Ponce-Cueto, E. & Dekker, R., 2009. "A framework for closed-loop supply chains of reusable articles," Econometric Institute Research Papers EI 2009-21, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    9. Agrawal, Saurabh & Singh, Rajesh K. & Murtaza, Qasim, 2015. "A literature review and perspectives in reverse logistics," Resources, Conservation & Recycling, Elsevier, vol. 97(C), pages 76-92.
    10. Eva M. García-Granero & Laura Piedra-Muñoz & Emilio Galdeano-Gómez, 2020. "Multidimensional Assessment of Eco-Innovation Implementation: Evidence from Spanish Agri-Food Sector," IJERPH, MDPI, vol. 17(4), pages 1-22, February.
    11. García-Granero, Eva M. & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2018. "Eco-innovation measurement: A review of firm performance indicators," MPRA Paper 119905, University Library of Munich, Germany.

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