IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v241y2015i3p917-926.html
   My bibliography  Save this article

A cost-efficient method to optimize package size in emerging marketsAuthor-Name: Gámez Albán, Harol Mauricio

Author

Listed:
  • Soto Cardona, Osman Camilo
  • Mejía Argueta, Christopher
  • Sarmiento, Alfonso Tullio

Abstract

Packaging links the entire supply chain and coordinates all participants in the process to give a flexible and effective response to customer needs in order to maximize satisfaction at optimal cost. This research proposes an optimization model to define the minimum total cost combination of outer packs in various distribution channels with the least opening ratio (the percentage of total orders requiring the opening of an outer pack to exactly meet the demand). A simple routine to define a feasible start point is proposed to reduce the complexity caused by the number of possible combinations. A Fast-Moving Consumer Goods company in an emerging economy (Colombia) is analyzed to test the proposed methodology. The main findings are useful for emerging markets in that they provide significant savings in the whole supply chain and insights into the packaging problem.

Suggested Citation

  • Soto Cardona, Osman Camilo & Mejía Argueta, Christopher & Sarmiento, Alfonso Tullio, 2015. "A cost-efficient method to optimize package size in emerging marketsAuthor-Name: Gámez Albán, Harol Mauricio," European Journal of Operational Research, Elsevier, vol. 241(3), pages 917-926.
    • Handle: RePEc:eee:ejores:v:241:y:2015:i:3:p:917-926
    DOI: 10.1016/j.ejor.2014.09.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221714007590
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2014.09.020?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. Harvey M. Wagner, 2002. "And Then There Were None," Operations Research, INFORMS, vol. 50(1), pages 217-226, February.
    2. Tobias Fanslau & Andreas Bortfeldt, 2010. "A Tree Search Algorithm for Solving the Container Loading Problem," INFORMS Journal on Computing, INFORMS, vol. 22(2), pages 222-235, May.
    3. Yan, Xi Steven & Robb, David J. & Silver, Edward A., 2009. "Inventory performance under pack size constraints and spatially-correlated demand," International Journal of Production Economics, Elsevier, vol. 117(2), pages 330-337, February.
    4. Wen, Naijun & Graves, Stephen C. & Justin Ren, Z., 2012. "Ship-pack optimization in a two-echelon distribution system," European Journal of Operational Research, Elsevier, vol. 220(3), pages 777-785.
    5. Richard C. Wilson, 1965. "A Packaging Problem," Management Science, INFORMS, vol. 12(4), pages 135-145, December.
    6. Alberto Ceselli & Giovanni Righini, 2008. "An Optimization Algorithm for the Ordered Open-End Bin-Packing Problem," Operations Research, INFORMS, vol. 56(2), pages 425-436, April.
    7. Jayashankar M. Swaminathan & Sridhar R. Tayur, 1998. "Managing Broader Product Lines through Delayed Differentiation Using Vanilla Boxes," Management Science, INFORMS, vol. 44(12-Part-2), pages 161-172, December.
    Full references (including those not matched with items on IDEAS)

    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. Wen, Naijun & Graves, Stephen C. & Justin Ren, Z., 2012. "Ship-pack optimization in a two-echelon distribution system," European Journal of Operational Research, Elsevier, vol. 220(3), pages 777-785.
    2. Işık Biçer & Florian Lücker & Tamer Boyacı, 2022. "Beyond Retail Stores: Managing Product Proliferation along the Supply Chain," Production and Operations Management, Production and Operations Management Society, vol. 31(3), pages 1135-1156, March.
    3. Fay, Scott & Mitra, Deb & Wang, Qiong, 2009. "Ask or infer? Strategic implications of alternative learning approaches in customization," International Journal of Research in Marketing, Elsevier, vol. 26(2), pages 136-152.
    4. Bortfeldt, Andreas & Wäscher, Gerhard, 2013. "Constraints in container loading – A state-of-the-art review," European Journal of Operational Research, Elsevier, vol. 229(1), pages 1-20.
    5. Willem van Jaarsveld & Alan Scheller-Wolf, 2015. "Optimization of Industrial-Scale Assemble-to-Order Systems," INFORMS Journal on Computing, INFORMS, vol. 27(3), pages 544-560, August.
    6. Sheng, Liu & Hongxia, Zhao & Xisong, Dong & Changjian, Cheng, 2016. "A heuristic algorithm for container loading of pallets with infill boxes," European Journal of Operational Research, Elsevier, vol. 252(3), pages 728-736.
    7. Lixin Tang & Gongshu Wang & Zhi-Long Chen, 2014. "Integrated Charge Batching and Casting Width Selection at Baosteel," Operations Research, INFORMS, vol. 62(4), pages 772-787, August.
    8. Kai-Lung Hui, 2004. "Product Variety Under Brand Influence: An Empirical Investigation of Personal Computer Demand," Management Science, INFORMS, vol. 50(5), pages 686-700, May.
    9. Xiao, Yongbo & Chen, Jian & Lee, Chung-Yee, 2010. "Optimal decisions for assemble-to-order systems with uncertain assembly capacity," International Journal of Production Economics, Elsevier, vol. 123(1), pages 155-165, January.
    10. Maxence Delorme & Manuel Iori, 2020. "Enhanced Pseudo-polynomial Formulations for Bin Packing and Cutting Stock Problems," INFORMS Journal on Computing, INFORMS, vol. 32(1), pages 101-119, January.
    11. Song, Zhe & Kusiak, Andrew, 2010. "Mining Pareto-optimal modules for delayed product differentiation," European Journal of Operational Research, Elsevier, vol. 201(1), pages 123-128, February.
    12. Almehdawe, Eman & Jewkes, Elizabeth, 2013. "Performance analysis and optimization of hybrid manufacturing systems under a batch ordering policy," International Journal of Production Economics, Elsevier, vol. 144(1), pages 200-208.
    13. Lim, Andrew & Ma, Hong & Qiu, Chaoyang & Zhu, Wenbin, 2013. "The single container loading problem with axle weight constraints," International Journal of Production Economics, Elsevier, vol. 144(1), pages 358-369.
    14. Alfaro, José A. & Corbett, Charles J., 2000. "The value of SKU rationalization: the pooling effect under suboptimal inventory policies," DEE - Working Papers. Business Economics. WB 9917, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    15. Ng, T.S. & Lee, L.H. & Chew, E.P., 2006. "Build-pack planning for hard disk drive assembly with approved vendor matrices and stochastic demands," European Journal of Operational Research, Elsevier, vol. 175(2), pages 1117-1140, December.
    16. Wong, Hartanto & Potter, Andrew & Naim, Mohamed, 2011. "Evaluation of postponement in the soluble coffee supply chain: A case study," International Journal of Production Economics, Elsevier, vol. 131(1), pages 355-364, May.
    17. Sung Hee Lee & Kun Soo Park & Yong Won Seo, 2016. "Multinational Firm’s Production Decisions under Overlapping Free Trade Agreements: Rule of Origin Requirements and Environmental Regulation," Sustainability, MDPI, vol. 9(1), pages 1-16, December.
    18. Karel H. van Donselaar & Vishal Gaur & Tom van Woensel & Rob A. C. M. Broekmeulen & Jan C. Fransoo, 2010. "Ordering Behavior in Retail Stores and Implications for Automated Replenishment," Management Science, INFORMS, vol. 56(5), pages 766-784, May.
    19. Ravi Anupindi & Li Jiang, 2008. "Capacity Investment Under Postponement Strategies, Market Competition, and Demand Uncertainty," Management Science, INFORMS, vol. 54(11), pages 1876-1890, November.
    20. Işık Biçer & Florian Lücker & Tamer Boyaci, 2019. "Beyond retail stores: Managing product proliferation along the supply chain," ESMT Research Working Papers ESMT-19-02_R1, ESMT European School of Management and Technology, revised 10 Feb 2020.

    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:ejores:v:241:y:2015:i:3:p:917-926. 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/locate/eor .

    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.