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Cost-effective pallet management strategies

Author

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  • 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
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    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. 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.
    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. 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.

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