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An optimization model for fleet sizing and empty pallet allocation considering CO2 emissions

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  • Jianwei Ren
  • Chunhua Chen
  • Jian Gao
  • Chenxi Feng

Abstract

Pallets are the most common equipment for transporting and storing goods. More and more companies are willing to rent pallets. Pallet rental companies need to transport pallets from their pallet rental service stations to customers and take these pallets back when they are unloaded. Hence, managers should scientifically configure vehicles for their pallet rental service stations. The fleet size, which indicates the amount and types of vehicles, can significantly affect the efficiency and costs of empty pallet allocation. Therefore, an optimization model for fleet sizing and empty pallet allocation is proposed using the methods of mixed-integer programming and stochastic programming. The objectives of this model are to maximize the profits of pallet rental companies and minimize carbon dioxide (CO2) emissions from vehicles. A particle swarm optimization algorithm with inertia weight (IPSO) is developed to solve the proposed model because IPSO can avoid becoming trapped in local optima and is able to find a globally optimal solution within a reasonable number of iterations. A numerical example proves the effectiveness of the proposed model and IPSO. The results of numerical tests show that the amount of CO2 emissions from vehicles can affect the decision on fleet sizing and empty pallet allocation. However, if the price, rental fees, or idle costs of the vehicles with low CO2 emissions are too high, managers would not choose them.

Suggested Citation

  • 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.
    • Handle: RePEc:plo:pone00:0229544
    DOI: 10.1371/journal.pone.0229544
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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).
    4. 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.
    5. 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.
    6. 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.
    7. 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.
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    Cited by:

    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. 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.
    3. Adil Baykasoğlu & Nurhan Dudaklı & Kemal Subulan & A. Serdar Taşan, 2022. "An integrated fleet planning model with empty vehicle repositioning for an intermodal transportation system," Operational Research, Springer, vol. 22(3), pages 2063-2098, July.

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