IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v168y2015icp234-244.html
   My bibliography  Save this article

Returnable packaging management in automotive parts logistics: Dedicated mode and shared mode

Author

Listed:
  • Zhang, Qinhong
  • Segerstedt, Anders
  • Tsao, Yu-Chung
  • Liu, Biyu

Abstract

We compare two different modes, i.e., dedicated mode and shared mode, used in packaging management in automotive parts logistics. In dedicated mode, every parts supplier uses his own packaging; while in shared mode, packages can be shared among the suppliers. For each mode, we calculate the total costs consisting of transportation cost and inventory holding cost, and prove that the total costs, the transportation cost and the inventory holding cost are all smaller under shared mode. We further illustrate the factors that influence the cost savings of shared mode, i.e., the total cost of dedicated mode minus that of shared mode. In particular, the cost savings are proved to be negatively related to the number of package categories, and are positively related to: (1) the demand gap of packages between areas, i.e., sum of the volume difference of every kind of packages that transported in and out of one area; (2) the failed ratio factor of the returned packages, i.e., the ratio of the packages that cannot be returned to the supplier because of broken, pilferage, misplace, etc.; and (3) the time savings of short distance transportation, i.e., the transportation time consumed between areas minus the transportation time within one area. Finally, numerical examples show that the cost savings can be considerable, and the number of package categories is the most important influence factor.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:proeco:v:168:y:2015:i:c:p:234-244
    DOI: 10.1016/j.ijpe.2015.07.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527315002492
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Glock, C. H. & Kim, T., 2016. "Safety measures in the joint economic lot size model with returnable transport items," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 74888, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Hellström, Daniel & Johansson, Ola, 2010. "The impact of control strategies on the management of returnable transport items," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 1128-1139, November.
    3. Accorsi, Riccardo & Cascini, Alessandro & Cholette, Susan & Manzini, Riccardo & Mora, Cristina, 2014. "Economic and environmental assessment of reusable plastic containers: A food catering supply chain case study," International Journal of Production Economics, Elsevier, vol. 152(C), pages 88-101.
    4. Kim, Taebok & Glock, Christoph H. & Kwon, Yongjang, 2014. "A closed-loop supply chain for deteriorating products under stochastic container return times," Omega, Elsevier, vol. 43(C), pages 30-40.
    5. Kim, T. & Glock, C. H., 2014. "On the use of RFID in the management of reusable containers in closed-loop supply chains under stochastic container return quantities," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 63689, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Kim, T. & Glock, C. H. & Kwon, Y., 2014. "A closed-loop supply chain for deteriorating products under stochastic container return times," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 62024, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    7. Das, Kanchan & Chowdhury, Abdul H., 2012. "Designing a reverse logistics network for optimal collection, recovery and quality-based product-mix planning," International Journal of Production Economics, Elsevier, vol. 135(1), pages 209-221.
    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. 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).
    2. 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).
    3. Qiu, Xuan & Huang, George Q., 2016. "Transportation service sharing and replenishment/delivery scheduling in Supply Hub in Industrial Park (SHIP)," International Journal of Production Economics, Elsevier, vol. 175(C), pages 109-120.

    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. 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).
    2. Cobb, Barry R., 2016. "Inventory control for returnable transport items in a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 53-68.
    3. Alamri, Adel A. & Syntetos, Aris A., 2018. "Beyond LIFO and FIFO: Exploring an Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory model," International Journal of Production Economics, Elsevier, vol. 206(C), pages 33-45.
    4. Julio C. Londoño & Rafael D. Tordecilla & Leandro do C. Martins & Angel A. Juan, 0. "A biased-randomized iterated local search for the vehicle routing problem with optional backhauls," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 0, pages 1-30.
    5. Kuzmicz, Katarzyna Anna & Pesch, Erwin, 2019. "Approaches to empty container repositioning problems in the context of Eurasian intermodal transportation," Omega, Elsevier, vol. 85(C), pages 194-213.
    6. Tianji Yang & Chao Fu & Xinbao Liu & Jun Pei & Lin Liu & Panos M. Pardalos, 2018. "Closed-loop supply chain inventory management with recovery information of reusable containers," Journal of Combinatorial Optimization, Springer, vol. 35(1), pages 266-292, January.
    7. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    8. Fahimnia, Behnam & Sarkis, Joseph & Eshragh, Ali, 2015. "A tradeoff model for green supply chain planning:A leanness-versus-greenness analysis," Omega, Elsevier, vol. 54(C), pages 173-190.
    9. Rui Zhao & Yiyun Liu & Zhenyan Zhang & Sidai Guo & Ming-Lang Tseng & Kuo-Jui Wu, 2018. "Enhancing Eco-Efficiency of Agro-Products’ Closed-Loop Supply Chain under the Belt and Road Initiatives: A System Dynamics Approach," Sustainability, MDPI, Open Access Journal, vol. 10(3), pages 1-15, March.
    10. Abdul Salam Khan & Catalin Iulian Pruncu & Razaullah Khan & Khawar Naeem & Abdul Ghaffar & Pakeeza Ashraf & Shah Room, 2020. "A Trade-off Analysis of Economic and Environmental Aspects of a Disruption Based Closed-Loop Supply Chain Network," Sustainability, MDPI, Open Access Journal, vol. 12(17), pages 1-28, August.
    11. 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.
    12. Liping Song & Yingluo Yan & Fengmin Yao, 2020. "Closed-Loop Supply Chain Models Considering Government Subsidy and Corporate Social Responsibility Investment," Sustainability, MDPI, Open Access Journal, vol. 12(5), pages 1-27, March.
    13. S. M. Shahidul Islam & Mohammad Abdul Hoque, 2017. "A joint economic lot size model for a supplier-manufacturer-retailers supply chain of an agricultural product," OPSEARCH, Springer;Operational Research Society of India, vol. 54(4), pages 868-885, December.
    14. Chan, Chi Kin & Wong, Wai Him & Langevin, A. & Lee, Y.C.E., 2017. "An integrated production-inventory model for deteriorating items with consideration of optimal production rate and deterioration during delivery," International Journal of Production Economics, Elsevier, vol. 189(C), pages 1-13.
    15. Schmitt, Thomas G. & Kumar, Sanjay & Stecke, Kathryn E. & Glover, Fred W. & Ehlen, Mark A., 2017. "Mitigating disruptions in a multi-echelon supply chain using adaptive ordering," Omega, Elsevier, vol. 68(C), pages 185-198.
    16. Byungsoo Na & Min Kyu Sim & Won Ju Lee, 2019. "An Optimal Purchase Decision of Reusable Packaging in the Automotive Industry," Sustainability, MDPI, Open Access Journal, vol. 11(23), pages 1-13, November.
    17. Govindan, Kannan & Soleimani, Hamed & Kannan, Devika, 2015. "Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future," European Journal of Operational Research, Elsevier, vol. 240(3), pages 603-626.
    18. Behzadi, Golnar & O’Sullivan, Michael Justin & Olsen, Tava Lennon & Zhang, Abraham, 2018. "Agribusiness supply chain risk management: A review of quantitative decision models," Omega, Elsevier, vol. 79(C), pages 21-42.
    19. 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).
    20. Modak, Nikunja Mohan & Kazemi, Nima & Cárdenas-Barrón, Leopoldo Eduardo, 2019. "Investigating structure of a two-echelon closed-loop supply chain using social work donation as a Corporate Social Responsibility practice," International Journal of Production Economics, Elsevier, vol. 207(C), pages 19-33.

    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:proeco:v:168:y:2015:i:c:p:234-244. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.