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... Ownership is not transferred; they are used only for transportation [1]. The uses of pallets and containers are very diverse, from agriculture, fishery, and livestock industries to manufacturing and distribution industries, as well as logistics companies; they are generated as waste through the selling or disposing of pallets and containers when they are damaged or lose their value over a certain period [2,3]. ...
... If the life distribution follows the Weibull distribution, MTTF (Mean Time to Failure) is calculated using Formula (2). ...
... If the shape parameter value is less than 1, it represents a decreasing failure rate, and if it is greater than 1, it represents an increasing Sustainability 2023, 15, 8797 6 of 11 failure rate function. As a result of calculating MTTF using Equation (2), that of the pallet (PE) was 9.6 years, that of the pallet (PP) was 3.2 years, that of the container (PE) was 16.5 years, and that of the container (PP) was 12.2 years (Table 1). This means that containers have a longer lifespan than pallets, and by material, PP has a shorter lifespan than PE. ...
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Pallets and containers are reused for a long period of time and are circulated and shared among consumers via a pool system. Although attempts have recently been made to convert to an EPR (Extended Producer Responsibility) system in Korea, it is difficult to calculate their mandatory recycling rates because they are treated as the same waste, even though they are clearly different from disposable consumer goods and plastic packaging materials. In this study, we tried to calculate waste generation based on the lifespan of plastic pallets and containers using the probability density function. The life distribution for each material (PE (polyethylene) and PP (polypropylene)) of pallets and containers was derived, and by applying this, the amount of waste generation from 2010 to 2027 was estimated. The Mean Time to Failure among pallets was 9.6 years for PE and 3.2 years for PP, and among containers, was 16.5 years for PE and 12.2 years for PP. Additionally, it was calculated that pallets had a waste generation rate of 67.5% to 75.1% by shipment, and containers 26.9–69.2%. These results can be used to calculate the waste generation rate when calculating the mandatory recycling rate of pallets and containers in the future. However, since pallets and containers are used second-hand, or are exported together with products after being shipped domestically, the amount flowing into recycling companies decreases, so it is considered that supplementation via material balance analysis is necessary to calculate the mandatory recycling rate.
... The industry is fragmented, resulting in the number of stakeholders involved usually being high: from pallet manufacturers to users, including several Pallet supply chains can involve several tiers and multiple interconnected stakeholders. Figure 1 shows two possible general configurations, an open-loop and a closed-loop system [8], and the stakeholders that are generally involved. ...
... First of all, the choice of a pallet management strategy has economic and environmental implications for the pallet provider that can vary according to the type of supply chain and organizational model chosen. The authors of [8] focus on the challenges related to the design of closed-loop pallet management systems by means of a simulation model, underlining the difficulty related to the integration of forward and reverse flows in the supply chain due to uncertainty in the quantity and quality of reverse flows. By means of a simulation model, they compare a few scenarios with different strategies for pallet recovery (direct or postponed interchange), showing that integrating the direct and reverse flows of pallets through a direct interchange allows them to reduce internal costs. ...
... This strategic decision can apply also to pallet recyclers/repairers, who find little space in the literature, and for which economic and efficiency objectives are completely missing in the studies reviewed: despite the increase in pallet repair practices due to the diffusion of closed-loop systems [8,65], a gap remains in the analysis of the economic performance of pallet repair and recycling operations, considering the variability of the demand and the uncertainty of pallet return flows, as well as in the evaluation of strategic partnerships. ...
Article
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Pallets are among the most used returnable transport items (RTIs), and they are critical assets for a supply chain as they have significant environmental and economic impacts during their whole life cycle. Differently from other packaging products, pallets are specifically designed to be repeatably repaired and reinjected for use. While this environmentally is beneficial as it reduces waste, it can create complex interactions between the stakeholder-involved manufacturers, pallet providers, users and recyclers. Further, the number of different actors is usually high, and the flow of materials among them needs to be coordinated. In addition, different business models can be implemented (such as internal management versus outsourcing) as well as logistics alternatives (closed- versus open-loop). Thus, the aims of this study are first to propose a systematization of design and management decisions regarding the pallet supply chain; next, to review the state of the art models and tools adopted to support each decision process relying on an analysis of the archival literature published between 1978 and 2021 on pallet management, to summarize the main decision problems addressed by the different stakeholders involved in the pallet life cycle and the adopted methods, and, finally, to highlight potential existing research gaps. This effort helps to outline potential contributions towards more sustainable pallet supply chains and can support pallet operators and companies in evaluating solutions to increase the economic and environmental sustainability of their pallet management. Results show that the perspectives of the pallet provider and of the supply chain are the most widely addressed in the existing literature, while those of pallet manufacturers and repairers should be further analyzed.
... If The above linear pallet management strategy may result in negative impact to sustainability on environment and business development without effective measures to handle industrial wastes of pallets, while business image and reputation can, therefore, be affected. Consequently, some researchers have explored the concepts of pallet pooling, which refers to pallet renting business to enhance the sustainability of using pallets in the LSCM [5][6][7]. Pallet management becomes a service provided by a dedicated company to cater for the requirements from routine operations and pallet maintenance. Subsequently, a closed-loop pallet management scheme inspired from the circular supply chains was proposed in order to eliminate industrial wastes by following the initiatives of "reuse", "reduce", and "recycle". ...
... Although the benefits of deploying the pallet pooling strategy, particularly for business and economic sustainability in the logistics industry, are commonly understood, The above linear pallet management strategy may result in negative impact to sustainability on environment and business development without effective measures to handle industrial wastes of pallets, while business image and reputation can, therefore, be affected. Consequently, some researchers have explored the concepts of pallet pooling, which refers to pallet renting business to enhance the sustainability of using pallets in the LSCM [5][6][7]. Pallet management becomes a service provided by a dedicated company to cater for the requirements from routine operations and pallet maintenance. Subsequently, a closed-loop pallet management scheme inspired from the circular supply chains was proposed in order to eliminate industrial wastes by following the initiatives of "reuse", "reduce", and "recycle". ...
... In view of the pallet management in the logistics industry, the strategies can be classified as open-loop and closed-loop pallet management systems, where the reverse pallet logistics are considered in the closed-loop system [5]. Regarding the open-loop system, the exchange of pallets among supply chain parties is performed in two modes, namely (i) single-use expendable mode and (ii) buy-and-sell mode [6]. ...
Article
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Pallet management as a backbone of logistics and supply chain activities is essential to supply chain parties, while a number of regulations, standards and operational constraints are considered in daily operations. In recent years, pallet pooling has been unconventionally advocated to manage pallets in a closed-loop system to enhance the sustainability and operational effectiveness, but pitfalls in terms of service reliability, quality compliance and pallet limitation when using a single service provider may occur. Therefore, this study incorporates a decentralisation mechanism into the pallet management to formulate a technological eco-system for pallet pooling, namely Pallet as a Service (PalletaaS), raised by the foundation of consortium blockchain and Internet of things (IoT). Consortium blockchain is regarded as the blockchain 3.0 to facilitate more industrial applications, except cryptocurrency, and the synergy of integrating a consortium blockchain and IoT is thus investigated. The corresponding layered architecture is proposed to structure the system deployment in the industry, in which the location-inventory-routing problem for pallet pooling is formulated. To demonstrate the values of this study, a case analysis to illustrate the human–computer interaction and pallet pooling operations is conducted. Overall, this study standardises the decentralised pallet management in the closed-loop mechanism, resulting in a constructive impact to sustainable development in the logistics industry.
... On the other hand, Valerio and Gnoni [22] studied the behavior of the feedback loops generated in the pallet supply chain. Their objective was to describe the critical factor in a pallet logistic network or exchange system, using a causal diagram and developing a tool based on simulation to help the logistic agents and to design efficient organizational scenarios for these systems. ...
... [ [21][22][23] Empirical support studies to develop causal loops, simulating optimistic/pessimistic scenarios from current ones and their validation in the pallet manufacturing business Developed a simulation model to compare scenarios in terms of time of the provider service and internal and global operation costs. ...
Article
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The proposal in the present research study is the result of a more than two-year process developed in a pallet manufacturing company for anchor enterprises in Southern Sonora, Mexico dedicated to beer production and export to the United States of America. Considering the high pallet demand for this supplier, a strategic plan was created in 2021, establishing an important project for developing technological solutions to improve decision making supported by graphical user interface and focused on sustainability. This study shows the application of system dynamics in all the wood and pallet manufacturing processes with a strategic sourcing supply chain. The method used for its development had the following stages: (1) developing the mapping process; (2) creating the causal loop diagram; (3) developing a flow and stock model with the representing mathematical equations; (4) simulating and validating current scenarios; (5) evaluating normal, optimistic, and pessimistic scenarios with multicriteria decision making using Technique to Order Preferences by Similarity and the Ideal Solution (TOPSIS) and Faire Un Choix Adéquat (FUCA); (6) building the graphical interface. The most relevant results for the company were having quantitative information regarding the pallet demand required by the main client for wood availability, which was the main restriction in the supply chain. The solution was based on four validation tests that allowed decision makers to support the production proposals considering the assistance of the dynamic models. The main conclusion demonstrated that using well-defined operation rules and policies—considering the installed capacity and pallet demand through the model solution—allows anticipating decisions on pallet quantity and reducing the risk of out-of-time deliveries.
... Considering the main application of mounting or loading of engines, still, there are a variety of engines resulting in the requirement of suitable pallets [5][6][7]. Recent studies were performed to assess the selection of materials, and process technologies that contribute to enhancing the performance of material handling with pallet design [8][9][10][11]. Finite element method has already proved its significance in the design and analysis of the products such as gears, plates and bridges of the various fields [12][13][14][15][16] prior to launching in the market. A concise and novel design of the pallet that can accommodate and accommodate a variety of engines while still being safe, effective, durable and operatable has yet to be designed and analyzed. ...
... The maximum equivalent stress in all of the three configurations under their respective loading conditions is way under the yielding stress of structural steel [9] hence it can be safely assumed that the pallet will not undergo any permanent deformation. It can be also observed that values of maximum equivalent stress and the values of maximum equivalent strain show a similar trend as observed in Figs 6,7,8,9,10,11,12,13. Furthermore, the trend of maximum values of equivalent strain energy can be understood through the load applied on each of the configurations. ...
Article
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A common problem in the automotive industry is how to best load and unload engines. In automobile segments, a variety of engines is produced as a consequence of the complexities of various operations. The motivation of the proposed study is taken from the real-time industry problem of shortage of specific pallet configurations subjected to loading and unloading subjected to the utilization of idle time of various engine configurations. The main aim of the study is to design and analyze a novel common interconvertible pallet for the convenient loading of 4 and 6-cylinder engines. The geometrical dimensions of the designed pallet are considered in such a way as to accommodate the medium-duty engine platform (MDEP) for a 4-cylinder 5-L engine and a 6-cylinder 8-L engine. The finite element analysis was performed to investigate the result outcomes to verify the proposed novel design. The boundary conditions were applied and the results were calculated in terms of equivalent von Mises stress, strain, total strain energy and deformation. Results reflected that all three configurations of the novel pallet are suitable according to the loading on the respective engine. The obtained results may utilize further in the designing of other novel pallet configurations. Graphical Abstract
... A pallet is a "portable, rigid platform used as a base for assembling, storing, stacking, handling and transporting goods" [1]. The application of pallets covers a wide spectrum of industries, just some of which are the food and beverage, automotive, mining, manufacturing, and chemical and pharmaceuticals sectors. ...
... In the United States of America alone, 1.9 billion pallets are used in various industries [1], [2]. Considering the prominence of pallets, improving their performance should improve operations in most of these industries. ...
Article
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Although pallets have traditionally been constructed from wood, there has been a shift towards making them from plastic and other composite materials. Subsequently, the storage and transportation industry has been inundated with questions about ‘the best’ pallet material type in relation to a supply chain. In addition, in a rapidly changing global manufacturing and storage environment, industry players have difficulty justifying the high capital cost of adopting new state-of-the-art pallets. This paper seeks to build a model to identify the best pallet material-of-construction (MOC) as perceived by the end consumer. The approach used for this was based on different stages of building an assistive multi-criteria decision model. This included modelling the decision framework using the analytic hierarchy process and undertaking an independent case study as the baseline for the modelling.
... Presently, there are many researchers focusing on addressing major issues of pallets, namely: product design problem, pallet loadings and pallet logistic design problem. The pallet product design problem focuses on how the materials and technologies for producing pallets can improve their performance and the pallet packing problem aims to identify an optimal configuration of pallets to reduce the transportation costs (Elia and Gnoni, 2015). The transport and freight costs make up a significant portion of fruit export, so there is a need to maximise the profits of the commodity without deteriorating the quality of the fruit. ...
... Pallets are usually made of several materials such as woods, metals and plastic (Elia and Gnoni, 2015) and wooden material are most commonly used in industrial applications (Buehlmann et al., 2009). Nearly 400 million wooden pallets are produced annually, which accounts for 86% of all the pallets sold worldwide (McCoy, 2003). ...
Thesis
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The ineffective utilisation of refrigerated container's (RC) space is a pressing problem for the South African fruit industry. Current packaging systems do not optimally make use of the refrigeration unit for airflow distribution and cooling efficiency of fruit. This results in heterogeneous airflow circulation and ineffective cooling of fruit. The aim of this research was to develop a validated computational fluid dynamics (CFD) model. The model was then used to explore novel packaging system for improved RC space utilisation and cooling performance. Both cooling and space utilisation aspects of the container need to be improved simultaneously, as market trends are increasingly demanding higher-quality fresh produce at lower costs. Firstly, a 3D CFD model of a fully packed RC was developed and validated experimentally. Pallets were considered as a porous media, and their directional loss properties were experimentally determined. A functional refrigeration unit was incorporated in the model to account for the dynamic cooling modes of the container. The resulting model predicted acceptable results with respect to airflow and temperature. Modelling prediction error was 17% for airflow distribution and 11% for the temperature prediction. Subsequently, the developed CFD model was used to evaluate conceptual packaging systems for space utilisation and cooling efficiency. Numerical simulations were performed to characterise the airflow distribution and cooling performance of the packaging system in a fully loaded refrigerated container. A multi-parameter approach was used to evaluate the performance of five loading scenarios, namely: Standard A, Standard B, Standard C, Hex and Tes in a fully loaded refrigerated container. The average convective heat transfer coefficient (CHTC) relative standard deviation (RSD) of the Standard packaging system is 47% higher than the Hex design and 51% higher than the Tes design. Overall, Tes design shows significant improved performance for space utilisation and quality preservation of packaged fruit. The results thus highlighted the substantial improvements that are possible concerning shipping costs and quality preservation if alternative packaging system designs are considered in the future. Lastly, the pallet stack ventilation requirements of the Standard packaging system in a refrigerated container was characterised. The influence of packaging system directional loss properties (i.e. the pallets ventilation) on airflow patterns within the pallet stacks was demonstrated. This has significant implications on the cooling uniformity and quality preservation of packaged fruit. The study further provides, for the first time, a benchmark for the design of ventilation in fresh produce packaging towards improved usage of refrigerated containers.
... El trasiego de mercancías a nivel mundial se realiza con tarimas; cada día, este producto cobra mayor importancia porque agiliza las labores de manipulación, reduce costos y mejora la eficiencia en las labores de logística, dado que permite mover mayor cantidad de producto en una sola operación (Elia y Grazia, 2015). Las tarimas o pallets son plataformas rígidas fácilmente manejables y movilizables por medios mecánicos que se utilizan para colocar, almacenar, apilar, maniobrar y transportar mercancías embaladas o sueltas. ...
... Las tarimas o pallets son plataformas rígidas fácilmente manejables y movilizables por medios mecánicos que se utilizan para colocar, almacenar, apilar, maniobrar y transportar mercancías embaladas o sueltas. Para su elaboración se utilizan materiales como madera, metal, plástico y otros; las de madera son las más comunes (Elia y Grazia, 2015). Se elaboran en diferentes diseños, de acuerdo con los requerimientos de los productos a colocar. ...
Article
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(Introducción): El Análisis de Ciclo de Vida (ACV) es una metodología robusta y reconocida para determinar la magnitud de los impactos ambientales de un producto. (Objetivo): El objetivo de la investigación fue evaluar el impacto sobre el cambio climático de las tarimas de madera. (Metodología): Los límites del sistema van desde la preparación del terreno para establecer las plantaciones, hasta la puerta de llegada a la empacadora de fruta. Se evaluaron dos unidades funcionales: a) una tarima con dimensiones comerciales para la manipulación y trasiego de productos agrícolas y b) un metro cúbico de madera para producción de tarimas. La temporalidad de los datos comprendió al periodo 2014-2017 y la de los resultados del Análisis de Ciclo de Vida un ciclo de rotación de 12 años para plantaciones de melina (Gmelina arborea Roxb). Se evaluaron dos sistemas de producto: con biomasa en el tratamiento térmico y con gas LP. (Resultados): El primero presentó un impacto potencial levemente menor. En ambos casos, la combustión de diésel asociada al transporte de madera rolliza fue la etapa más intensa en emisiones, libera cerca de 1.61 kg CO2-eq tarima⁻¹ y 43.22 kg CO2-eq m⁻³. El diésel, en todas las etapas del ciclo de vida, es la principal fuente de emisión de gases de efecto invernadero, ya que libera 2.31 kg CO2-eq tarima⁻¹ y 86.57 kg CO2-eq m⁻³. (Conclusiones): Las oportunidades de mejora en el desempeño ambiental del producto se encuentran en el uso de vehículos de carga más eficientes y en la reducción de la distancia entre las plantaciones forestales y la planta de aserrío.
... RTIs and disposal/one-way packaging coexist in actual supply chains. A CLSC with RTIs is formally defined by Glock (2017) Glock (2017), the existing RTI management studies can be mainly classified into two categories: the comparison of alternative one-way packaging and RTI systems (Capuz and Aucejo 2005, Mollenkopf et al. 2005, Ray et al. 2006, Grimes-Casey et al. 2007, Levi et al. 2011, Menesatti et al. 2012, Pa lsson et al. 2012, Mazeika Bilbao et al. 2011, Zhang et al. 2015, Elia 2015, Carrano et al. 2015, and RTI management system (Tsiliyannis 2005, Thoroe et al. 2009, Atamer et al. 2013, Goudenege et al. 2013, Bottani et al. 2015, Hariga et al. 2016, Ni et al. 2015, Elia and Gnoni 2015, Yusuf et al. 2017. The involved industry of RTI CLSC mainly include the grocery sector, the automotive sector, the consumer goods sector, and the chemistry and floricultural sector (Glock 2017). ...
... RTIs and disposal/one-way packaging coexist in actual supply chains. A CLSC with RTIs is formally defined by Glock (2017) Glock (2017), the existing RTI management studies can be mainly classified into two categories: the comparison of alternative one-way packaging and RTI systems (Capuz and Aucejo 2005, Mollenkopf et al. 2005, Ray et al. 2006, Grimes-Casey et al. 2007, Levi et al. 2011, Menesatti et al. 2012, Pa lsson et al. 2012, Mazeika Bilbao et al. 2011, Zhang et al. 2015, Elia 2015, Carrano et al. 2015, and RTI management system (Tsiliyannis 2005, Thoroe et al. 2009, Atamer et al. 2013, Goudenege et al. 2013, Bottani et al. 2015, Hariga et al. 2016, Ni et al. 2015, Elia and Gnoni 2015, Yusuf et al. 2017. The involved industry of RTI CLSC mainly include the grocery sector, the automotive sector, the consumer goods sector, and the chemistry and floricultural sector (Glock 2017). ...
Thesis
Closed-loop supply chain (CLSC), as an important branch of supply chain, has received increasing attention in recent decades. However, CLSC for perishable food products that is more complex than classic CLSC has been seldom studied in spite of its growing applications in practice. This thesis aims to develop new models and methods for optimizing closed-loop food supply chain with returnable transport items. To this end, three new problems are investigated.Firstly, a closed-loop food supply chain with returnable transport items (CLFSC-RTI) is studied. This problem involves a single manufacturer and a single retailer. Outsourcing is permitted and RTI purchasing budget is limited. The objective is to maximize the total profit of the supply chain. The problem is formulated as a mixed integer linear program (MILP) and it is proved to be NP hard. To solve the problem, an improved kernel search-based heuristic is designed. Computational experiments on a real case study and extensive random instances demonstrate the effectiveness and efficiency of the proposed model and heuristic.Secondly, a bi-objective closed-loop food supply chain with returnable transport items (BCLFSC-RTI) is investigated. The two objectives are to maximize the total profit and to minimize carbon emissions, simultaneously. The studied problem considers multiple retailers. For this complex bi objective problem, a bi-objective MILP is proposed for its modelling, and an iterative ε-constraint method is applied to solve it. Then, an improved kernel search-based heuristic is developed to solve the transformed single objective problem in each iteration of the ε-constraint method. Computational results based on various randomly generated instances show that the performance of the proposed method is comparable to that of a state-of-the-art commercial optimization solver CPLEX.Finally, a closed-loop food inventory-routing problem with RTIs (CFIRP-RTI) is addressed. In this problem, a vehicle routing problem is integrated and returnable transport items with different protective levels are considered. An appropriate MILP is proposed to formulate the problem, and the problem is proved to be NP-hard. Numerical experiments are carried out to validate the proposed model.
... way to cut costs for most businesses [3]- [5]. Elia and Gnoni proposed a closed-loop pallet pool supply chain [6]. Gnoni & Rollo and Kim & Glock employed RFID (radiofrequency identification) technology to track rental pallets [7], [8]. ...
... The output-oriented integer-valued DEA model with generalized reference sets (OG-IDEA) for the performance evaluation of DMU k (k ∈ V ) can be represented by model (6). ...
Article
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The development of the pallet rental industry is moving at a rapid pace. However, there is no literature on the performance evaluation of pallet rental companies except our previous study. This paper contributes to extending our previous super-efficiency integer-valued DEA (data envelope analysis) model to a group of integer-valued DEA models with generalized reference sets (G-IDEA). According to the proposed approach, the reference sets for decision-making units (DMUs) are composed of proper efficient sample units instead of efficient DMUs. These sample units, which may or may not be the same as DMUs, can be selected by decision-makers according to their demand. The advantages of the G-IDEA models are as follows: (1) they can be applied to find the projections of pallet rental companies with real-valued and integer-valued variables on the efficient frontier; (2) they are able to help the decision-makers in inefficient pallet rental companies make a step by step efficiency improvement scheme. Particularly, we develop a non-oriented integer-valued DEA model with generalized reference sets (NG-IDEA). The NG-IDEA model can be used to figure out how to improve the performance of inefficient pallet rental companies by simultaneously decreasing inputs and increasing outputs. The proposed models are applied to the performance evaluation of ten pallet rental companies. The results of the case study prove the effectiveness of our models. Furthermore, some valuable suggestions on how to improve the efficiency of inefficient pallet rental companies are presented based on the results.
... They also have a significant environmental and economic impact during their lifecycle. A pallets supply chain is complex, and it involves different actors and processes from manufacturer to users with forward and reverse logistics (Elia & Gnoni, 2015). For the current model, the use of pallets is easy to differentiate green purchasing from non-green purchasing as the pallets are made of different materials such as wood and plastics. ...
Article
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Transitioning toward a circular economy (CE) offers a promising avenue for achieving sustainable logistics systems. Nevertheless, the assessment of sustainable logistics practices (SLPs) in the CE context presents challenges due to the inherent dynamism and complexity of logistics systems. This study aims to assess SLPs toward a CE by employing a system dynamics analysis. Specifically, we focus on four sustainability practices: green purchasing (GP), eco‐design (ED), reverse logistics (RL), and green transportation (GT). These practices are assessed in terms of economic, environmental, and social dimensions of sustainability performance using a hypothetical case study centered on pallet manufacturing and distribution system. The results revealed that the RL practice yields improved economic and social performance, while GT enhances environmental performance more significantly when compared to the other three practices. Our analysis shows RL as a promising practice that enhances overall sustainability performance. This model serves as a valuable tool for decision‐makers aiding them in the prioritization of sustainability practices based on their performance within various CE strategies.
... Wide distribution area may require long backhaul trips, discouraging the use of re-usable package (Albrecht et al., 2013). Although, the great value of coordination between forward and reverse flows on CLSC performance (i.e. in terms of inventory and logistics costs optimization, and service levels enhancement) is recognize by Elia and Gnoni (2015). Therefore, a major coordination may lead to the design of pooling network over a strategic perspective (Accorsi et al., 2015). ...
Conference Paper
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The large movement of outsourcing and focusing on the key-skills has conducted to the creation of the new profession of “logistic service providers”, which are positioned as real interfaces pilots and constitute a radical innovation of the managerial, strategic and operational plan. Being based on a scientific analysis, this works aims to identify the factors that have an impact on the LSP contribution, and to define, later on, the characteristics required by the logistic service providers, to highly contribute to the logistics chains and to perform their role of integrators. Through the case of Logistics providers that are operating in Morocco, we will bring clarifications that foster the new characterization techniques of LSP, which are founded, more and more, on their ability to control and coordinate various integration layers, (flows, processes and activities, Information system and actors), rather than on traditional elements of costs, quality and delays.
... CARRANO A L et al. [12] believe that pallet sharing can reduce carbon emissions and improve the efficiency of logistics operations. The study of ELIA V et al. [13] found that a pallet logistics network and exchange system are the key factors in realizing a closed-loop pallet management system. Guanghua Zhao et al. [14] proposed four common distribution operation modes based on shared logistics and believed that a logistics information platform had to be established to ensure the organic combination and sharing of the various areas of information. ...
Article
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Most of the domestic wholesale markets have many operating entities, and the level of organization and scale is not high; therefore, at this stage, building a shared business platform and carrying out common distribution is an important way to improve the overall efficiency of the wholesale market distribution operations and the level of the intensive utilization of key resources such as vehicles. Carrying out common distribution requires the formation of a good synergy mechanism among the participating subjects, in which the design of a scientific and reasonable benefit distribution scheme, especially in balancing the relationship between government resources and social resources, is particularly important. As the benefit distribution of cooperation is affected by the dynamic changes of the resource input ratio, the distribution operation scale, the risk taking, and other factors, this paper establishes a multi-weight interval Shapley value method benefit distribution model, which reflects the effect of the key parameter variables. Through the empirical analysis of Beijing’s wholesale markets for agricultural products, the results show that the revised benefit distribution is more in line with the interest demands among multiple subjects and is positively correlated with the contribution degree among the participating subjects, which can better mobilize the cooperation enthusiasm of the participating enterprises and provide a new methodological path to solve the problem of common distribution in wholesale markets. The distribution model constructed in this paper further enriches the relevant research content in the field of common distribution and is of reference value for the benefit distribution problem that requires comprehensive consideration of the dynamic change in the multiple parameters affecting the relationship.
... If the QC is not assigned, the container loading and unloading operations are not fulfilled. (11,12) The process shown in Fig. 2 can be described in more detail as follows. There are two container terminal operations. ...
... Kim, Glock and Kwon [31] pointed out that return lot size and time of RTIs influence deterioration rate of products in the CLSC. Elia and Gnoni [32] proposed a discrete event simulation model to support the management of closed-loop systems for pallets. Bottani et al. [33] conducted optimization of the asset management process in a real CLSC, consisting of a pallet provider, a manufacturer and seven retailers. ...
Article
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Pallet pooling has been widely recognized as an important part of the green supply chain. The development of pallet pooling is an essential component for the transformation and upgrade of the logistics industry in China. Pallet pooling can, however, lead to a conflict over potential benefits among the players. One of the main problems of pallet pooling in China is the reasonable benefit allocation mechanism has not been formed. The pallet pooling system (PPS) with participation of the third-party platform (PPSWPTPP) is one of the pilot modes of pallet pooling in China. Based on evolutionary game theory and a penalty mechanism for breach of contract, this paper constructs a tripartite evolutionary game model of the PPSWPTPP. Eight propositions are set in two basic scenarios regarding whether pallet pooling is adapted to the logistics market to study the stability and dynamic evolution process of the players in the PPSWPTPP. Theoretical and numerical simulation results indicate that these will affect the smooth development of the PPS. The suitable setting of penalties and bonuses, the precise estimation of the pooling benefits, the intention intensity of the players to the pallet pooling, and whether to adapt to the logistics market demand are explored.
... As for the circular management of (secondary) packaging, all the actors agreed on one specific factor, i.e. the importance to optimise the inbound and return trips for the refrigerated containers. Closed loop pallet management systems are a challenging domain which calls for attention from the academic word (Elia and Gnoni 2015). The shift towards the innovative technology would require the logistics provider to invest even more intensively on optimised routing algorithm for closed loop management of refrigerated containers. ...
Article
There is a need for the dairy supply chain to improve its environmental performance. Intermodal rail-road transportation can be a way to reduce CO2 emissions. However, despite technological innovations in the realm of cooling technology, which could enable a shift to intermodal transportation, the use of intermodal rail-road in the dairy supply chain is still low. A blueprint is needed to foster the application of intermodal transportation in the sector. Literature provides little guidance in this sense. Therefore, this paper investigates how to ease the shift to intermodal rail-road transportation in the dairy supply chain through multiple case studies, performed at different stages of the supply chain. A set of enablers of the shift is discussed, along with a blueprint for innovative technology, and logistics and business models. The plan takes into account all the actors of the dairy industry, as well as other players, i.e. technology providers, academia and institutions. This paper enriches literature, thanks to its multi-stage research, providing managers with a practical tool to support the shift to intermodal transportation in the dairy industry. The main limitations lay in the choice of the sample, i.e. only Italian companies and no small retailers and farmers have been involved. © 2020 Informa UK Limited, trading as Taylor & Francis Group.
... These strategies are analyzed by Hellström and Johansson (2010) through a case study, where the aim is to reduce cost of RTI management and transport. A good strategy for RTI management is the interchange between suppliers and customers (Elia and Gnoni 2015), i.e., suppliers deliver products in RTIs and customers return them empty. However, such interchange cannot be done simultaneously because pickups are only possible when deliveries have already been made and the vehicle is empty (Koç and Laporte 2018). ...
Article
The vehicle routing problem with backhauls integrates decisions on product delivery with decisions on the collection of returnable items. In this paper, we analyze a scenario in which collection of items is optional—but subject to a penalty cost. Both transportation costs and penalties associated with non-collecting decisions are considered. A mixed-integer linear model is proposed and solved for small instances. Also, a metaheuristic algorithm combining biased randomization techniques with iterated local search is introduced for larger instances. Our approach yields cost savings and is competitive when compared to other state-of-the-art approaches.
... More importantly, the structure of renting contracts for reusable packages, which could lead to various renting periods, payment schemes, and claim management is the subject that has not been investigated in the literature (to the best of our knowledge). Second, the role of third-party logistics in shipping loaded packages and collecting empty ones needs to be explored more; see Kroon and Vrijens (1995) and Elia and Gnoni (2015) as some examples in this regard. To this end, the selection of an appropriate third-party logistics is an important practical question that is worthy of further research consideration. ...
Article
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The pivotal shift from single-use to reusable packaging has recently challenged the concept of packaging ownership. Extant literature have studied supply chain systems using reusable packaging for bundling (known as secondary packaging) or transportation (known as tertiary packaging) of products. Although using reusable packaging for containing products (known as primary packaging) has been tested by more than two dozen of the world’s biggest brands (e.g., Nestlé, PepsiCo, and Procter & Gamble), it has not received much attention in studies concerning supply chain systems yet. In this paper, we aim to review the extant literature in light of (1) the environmental and economic costs of reusable packaging, (2) the design of reusable packaging logistics systems, and (3) the implications of operations management for reusable packaging. Based on our analysis of existing studies, we then deliver insights and potential opportunities for future research on reusable packaging.
... Gnoni and Rollo [13], Kim and Glock [14], and Ren et al. [15] researched how to develop an advanced tracking system using RFID. Elia and Gnoni [16], Xu [17], and Li et al. [18] also made the effort to understand how to efficiently manage pallets taking advantage of information technology. Ren et al. [19], Doungpattra et al. [20], Zhou et al. [21], and Kesen and Alim [22] developed some optimization models for empty pallet allocation. ...
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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.
... Scheduling problem of returnable container with respect to production was solved by mathematical programming approaches (Mensendiek, 2015). Elia & Gnoni (2015) studied to analyze critical factor in designing closed loop pallet management system. studied RTI availability to avoid stockouts with safety measures such as safety stocks, safety return times and their combinations under stochastic return times of RTI. ...
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The aim of the paper is to develop a system dynamics model for hub & spoke container network's capacity & transportation planning policy selection of which objective is to maximize the long term earnings. The system dynamic modelling approaches are used to compare the policies associated with some performance indicators including capacity utilization, service level, return on investment. The main contribution of the study is to compare the policies by including the interactions of container system processes from a broad perspective for balancing capacity utilization and market share with the proposed approaches with system dynamic modelling approaches. Keywords: Returnable Transport Items, Container Management, Capacity & Transportation Planning, System Dynamics
... identified: the first problem is to address is the possibility of coordinating forward and reverse flows in last-mile logistics, combining the delivery to the final customer with the collection of EOL products, which can be convenient if both the operations are managed by the same actor. This coordination is already in place in several business-to-business (B2B) contexts: to name a few examples, new tires distribution to mechanic's workshops is often combined with the collection of used ones; a similar dynamic can be found in pallet management models where direct interchange of new and used pallets is put in place (Elia and Gnoni 2015). The "one-to-one" service operated by retailers of electric and electronic equipment for big devices (e.g. ...
Conference Paper
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The scientific and technical interest towards sustainability issues is increasing in the industrial sector; thus, closed-loop supply chains are getting more and more diffused. As recycling and remanufacturing strategies are becoming a common practice, the importance of reverse logistics is nowadays increasing. Practitioners need to face with both strategic and operational level decisions related to the coordination of direct and reverse logistic flows. While several reviews are available on reverse logistics and closed-loop supply chains, a summary of scientific literature on integrated forward and reverse logistics is still missing. This paper proposes a review of the literature focused on how to integrate forward and reverse logistics in the industrial sector. The main purpose is to identify advantages and criticalities of current tools highlighted by researchers on this topic, with particular attention to modelling and simulation tools. A critical analysis on the benefits and challenges of the main methods identified is proposed. A discussion about potentialities provided by simulation modelling is also discussed.
... Pallet rental service providers (pallet rental companies) need to ensure that their customers always have enough high-quality pallets available wherever and whenever the customers need them, which is not an easy task. In order to support the rapid development of pallet rental industry, many scholars have researched on relative topics including pallet pool supply chain [15], pallet tracking [16], [17], pallet allocation optimization [18], [19], and pallet rental pricing [20]. However, as far as we know, there is no literature on how to measure the performance of pallet rental companies. ...
Article
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Pallets play an important role in logistics. It is well known that pallet rental is beneficial to both pallet users and society, and the pallet rental industry is very large nowadays. A non-oriented super-efficiency integer-valued DEA (data envelopment analysis) model for the performance evaluation of pallet rental companies is presented. The method differs from traditional models in that (1) it can be used to accurately estimate the performance of efficient pallet rental companies with integer-valued and real-valued variables; (2) it is an alternative approach to providing numerical super-efficiency scores for efficient pallet rental companies when input-oriented or output-oriented VRS (variable returns to scale) super-efficiency models are infeasible for them. A case study of nine pallet rental companies proves the advantages of the proposed model, and it shows that the efficiency gap among pallet rental companies is very large. Based on the results, some suggestions on the development of the pallet rental industry are proposed. The methodology and results would provide valuable contributions to the decision-making processes of both pallet rental companies and their customers.
... As pallets are moving through the whole supply chain, it is important to manage supply chain and information efficiently. Elia & Gnoni [27] designed a closed-loop pallet pool supply chain, which consists of pallet suppliers, pallet recyclers, and upstream and downstream customers. Xu [28] studied on the method of pallet pool supply chain management and designed an information system based on RFID. ...
Article
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Development of sharing economy has brought new opportunities to the development of green logistics. Pallet pooling is a typical type of sharing economy. It has been recently promoted in almost every country in the world. Researchers have reached a common agreement that establishing an effective pallet pool is of great importance to the pallets use efficiency. It is also believed that the implementation of pallet pool will substantially contribute to the economic and social development. Detailed analysis of pallet pooling such as benefit analysis, mode choose, pallet allocation model & algorithm, quality control, etc. are discussed in this paper. Based on literature review, several important problems are listed for future study. These problems are information management, supply chain management, rental pricing, pallets tracking and allocation, quality control, sustainable development (carbon emissions), and “internet plus pallet pooling”. Some suggestions on China’s pallet pooling development are proposed as well.
... In this study, it was possible to address this difficulty and solve it with the use of DES, which aligns with the studies of Diabat et al. (2015) and Golebiewski et al. (2013) who applied simulation to propose changes in systems involving several parties. In addition, DES proved to be a tool to help managers make decisions based on environmental and cost variables, provided by other consortium operating arrangements, as also found in studies by Nujoom et al. (2018), Selvaraj et al. (2016), Elia and Gnoni (2015), and Altekin and Akkan (2012). ...
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Tires require adequate disposal at the end of their useful life due to the environmental damage that improper disposal can cause. Since the 1990s, Brazilian legislation has laid out specific rules for tire disposal. This brought about results in 2017, when 93% of the target was met for environmentally correct tire disposal, according to the Brazilian Institute of the Environment and Renewable Natural Resources. To reach this index, consumers, business people, city halls, and manufacturers had to work together. However, cities with fewer than 100,000 inhabitants continued to encounter difficulties to carry out the process efficiently. Thus, the objective of this study is to propose new alternatives so that small cities can plan and implement reverse logistics management for unusable tires. The tool used to verify improvement was discrete event simulation, which allowed for the creation of scenarios, experimenting with changes to the consortium’s operation. The analysis confirms that the consortium of cities can have a more efficient process in the destination of tires, with the possibility of reducing costs by 15%, emission of pollutant gases by 71%, and CO2 by 57%.
... Several studies research on pallet supply chain management. Elia and Gnoni designed a closed loop system for pallet management [10]. Zhao proposed a supply chain information service frame model for pallet management based on XML [11]. ...
Article
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Pallet is a very important innovation in logistics industry. Pallets are so widely used that we can find them in nearly every logistical operation scenario. In order to manage pallets efficiently, researchers have developed several pallet management strategies (PMS). The most common and widely accepted PMS includes extensive management of pallets (EMP), transfer of pallet’s ownership (TPO), and pallet rent (PR). This paper addresses mainly on how to help pallet managers choose a certain kind of PMS from the perspective of supply chain cost. Firstly, cost models of three kinds of PMS are presented. Secondly, all parameters involved in the models are valued based on data that is collected from industry survey. The results show that the cost of PR is constantly lower than EMP, and also lower than TPO when the operation period is no more than 37 months. Finally, the effect of several important parameters on the cost is studied by sensitivity analysis. The selection strategies of PMS are proposed based on the results.
... Specifically, the latter were the first to estimate the carbon footprint of a wood pallet life cycle. Elia and Gnoni [18] used discrete-event simulation to aid in the design of a CLN for pallet management in order to meet cost and time efficiency targets. The environmental impact and the cost of pallets were measured by Bilbao et al. [11], who supported the selection of pallet management systems and of the materials composing pallets. ...
Article
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Manufacturing, storage, and transportation processes are typically facilitated by pallets, containers, and other reusable transport items (RTIs) designed to guarantee many cycles along a lifespan of several years. As a consequence, both supply and reverse transportation of RTIs need to be managed to avoid stockout along the supply chain and the unsustainable production of new tools from virgin materials. This paper focuses on the business of pallet management by analyzing the transport operations of a pallet pooling network serving a large-scale nationwide retailer. The pooler is responsible for supplying, collecting, and refurbishing pallets. The combination of the pooler’s management strategies with different retailer network configurations results in different pooling scenarios, which are assessed and compared in this paper through a what-if analysis. The logistical and environmental impacts generated by the pallet distribution activities are quantified per each scenario through a tailored software incorporating Geographic Information System (GIS) and routing functionalities. Findings from this analysis suggest how to reduce vehicle distance traveled (vehicles-km) by 65% and pollutant emissions by 60% by combining network infrastructures and pooling management strategies—identifying an empirical best practice for managers of pallet businesses.
... This system is evaluated with the aid of a computational model. DES has already been applied in several RL studies, such as Ebner et al. (2016), Elia and Gnoni (2015), Zolfagharinia et al. (2014), Umeda (2014), Berruto et al. (2013), Altekin and Akkan (2012), and Yu and Wu (2010). These studies show that DES is more practical for modeling when there is a high number of variables involved and when there is a need to insert interdependence among them. ...
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This article aims to evaluate municipal solid waste (MSW) management schemes in order to promote sustainability and eco-efficiency, core elements in global mitigation strategies in both public and private policies. A discrete event simulation (DES) approach was used to integrate the economic, environmental, and social aspects related to aseptic carton packages (ACP) in Itajuba, Brazil. The simulated scenarios consider three alternatives for disposing ACP: landfills, recycling, and incineration with energy recovery. According to our findings, incineration alternatives are preferred from an eco-efficiency perspective, given the potential greenhouse gas (GHG) emissions reductions and due to the possibility of energy recover, which reinforces the contribution of this technology to promote sustainability as largely found in the international literature. Given the context of MSW management in Brazil, this represents a significant opportunity to increase the effectiveness of mitigation strategies adopted in the country. Taking into account that this is by far the least applied technology, the authors strongly advocate that global strategies for mitigation consider different approaches to integrate carbon dioxide (CO2) emission reductions related to the entire MSW management system and its alternatives, thus advancing from a waste disposal-oriented system to a life cycle–oriented system.
... In the scientific literature, however, the focus has been on the overarching choice of the pallet management system so far [1], [9], [10]. The economic perspective generally results in a comparison of pallet management systems with the aim of selecting the most cost-effective system [11], [12]. Operational considerations are less in the focus of scientific research than strategic decision-making aids for the selection of a pallet management system. ...
Conference Paper
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In the pallet exchange system, consignees, shippers and forwarders all bear large financial burden regarding the exchange of pallets. Thus, efficiency and costs are strongly influenced by the individual behaviour of the participants. The aim of this study is to focus on the influences of these factors. Of special interest is the reasonable allocation of pallets. The pallets shall be kept in good condition as long as possible to avoid costs for repairing and replacing defective pallets. Thereby, the predictable depreciation in value can be reduced by a reasonable selection of pallets depending on the wear trait of the transported goods.
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This study aims to analyze the relationship of single-used expendable strategy and its impact on the environment on the supply chain and pallet logistics at PT. Sumber Rezeki Palletindo. There are two types of data used in this study, namely primary data by conducting in-depth interviews with employees of PT. Sumber Rezeki Palletindo and secondary data taken from previous research journals, the government's official website, namely the Agricultural Quarantine Agency. The results of this study indicate that the single-used expendable strategy used by PT. Sumber Rezeki Palletindo is considered the most effective because the costs incurred from production to product distribution are the most minimal costs compared to other strategies. As an implementation of green operation on pallets, the ISPM#15 fumigation process, Phosphine gas can be an alternative to fumigation in place of Methyl Bromide gas because it is considered not to leave residues harmful to the environment. Unfortunately, there is no alternative to Heat Treatment measures to reduce the environmental impact.
Article
Purpose Pallets ensure efficient processes in logistics and are exchanged between the different actors, while passing through various supply chains several times. In common practice, the exchange is often not directly carried out on site, e.g. due to a lack of time, so that additional trips and new pallet purchases become necessary. To reduce these negative effects, a digital cross-actor platform is designed, and its potential is investigated. Design/methodology/approach The authors developed an agent-based simulation model with mathematical optimization. Using experience from practitioners, as well as real-world datasets which were analyzed, the authors ensure a realistic model of the pallet exchange system in Germany. Findings The authors demonstrated that, with the help of this platform concept, transport routes can be shortened, debts and receivables can partly be equaled out through balancing, and the quantity of pallets in the overall system can be reduced. Research limitations/implications The results are not directly transferable to pallet exchange systems in other countries without considering their general settings. Practical implications Digital networking increases the efficiency of the existing pallet exchange system. Even small collaborations prove to be reasonable. Originality/value The authors developed new mechanisms for a digital pallet exchange platform, which takes on the role of a central planning instance, in addition to recording pallet receivables and debts. It enables the planning of the commodity flow of empty pallets, which are transported by the forwarders on regular routes, and distributed between the platform participants.
Chapter
Efficient handling operations concern unitized load with integrated packaging apparatuses. Express transport service and commerce are today the first need of industry, also considering the food sector in which goods can fast become waste. Pallets and bags are two of the most used, affordable, and useful tools for the transport and distribution of food materials. Pallet demand can be used as an economic indicator since global trade travels on pallets. According to this, pallets can be considered a critical point for logistic facility cost and management provided by the food industry. Materials, standard requirements, sanitizing treatments, and supply chain management are covered in this chapter.
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In order to realize the goals of Industry 5.0 (I5.0), which has data interoperability as one of its core principles, the future research in the Supply Chain (SC) visibility has to be aligned with socially, economically and environmentally sustainable objectives. Within the purview of circular economy, this paper indicates various aspects and implications of data sharing in the SCs in light of the published research. Taking into consideration the heterogeneity of data sources and standards, this article also catalog all the major data-sharing technologies being employed in sharing data digitally across the SCs. Drawing on the published research from 2015 to 2021, following the PRISMA framework, this paper presents the state of research in the field of data sharing in SCs in terms of their standardization, optimization, simulation, automation, security and more notably sustainability. Using the co-occurrence metric, bibliometric analysis has been conducted such that the collected research is categorized under various keyword clusters and regional themes. This article brings together two major themes in reviewing the research in the field. Firstly, the bibliometric analysis of the published articles makes manifest the contours of the current state of research and the future possibilities in the field. Secondly, in synthesizing the research on the foundations of sustainability within the CRoss Industry Standard Process for Data Mining (CRISP-DM) framework, this article deals with the various aspects and implications of information sharing in the SCs. By bringing these two themes together, this paper affords a prospective researcher with the research vis-à-vis the information sharing in SC, starting from the actual data standards in use to the modality and consequence of their application within the perspective of the circular economy. This article, in essence, indicates how all the aspects of data sharing in SCs may be brought together in service of the theme of I5.0.
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Given the huge number of products transported worldwide every day, it would be advantageous to use lightweight pallets made of readily recyclable materials that are easy to clean, durable, and cheap to maintain. However, the design process for new metal pallets does not follow any specific code, which makes the transition to products with improved characteristics more challenging. This paper describes the development of a new modular steel pallet that combines blocks and deck boards to produce a range of configurable geometries for use in transportation (forklifting) and stationary (racking, stacking) conditions alike. Analytical and numerical analyses using the 3D finite element method (FEM) were carried out. Experimental tests were performed to evaluate ultimate strengths and deformations for different loadings. The experimental results used to validate the numerical models showed that these pallets performed well in terms of stiffness, deformation, and stresses. A comparative life cycle analysis (LCA) was also carried out to identify the main environmental impacts of the life cycle of pallets made from different materials. The results of a “cradle-to-gate with options” model suggest that the new proposed pallet performs better than its wood, plastic, and aluminium counterparts.
Conference Paper
Pallets are returnable transport items and of great importance for supply chains. They ensure efficient storage, transport, and handling processes. The pallet cycle, however, is associated with a substantial effort. In addition to administrative costs, extra trips and detours must often be taken by forwarders to retrieve pallets or buy new pallets. In this paper, a fictitious cross-actor pallet exchange platform is analyzed, which manages pallet debts and receivables between the different actors of a supply chain. A claim transfer is performed, and the actors no longer owe pallets to each other, but to the system. This provides greater flexibility, as actors with open claims can collect pallets from all actors that have a negative balance according to the system. Our analysis shows that with such a system, additional trips can be reduced by 70 %, thus making the management of pallets more efficient.
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The efforts of this review paper are twofold: to provide an insightful examination of various contributions to knowledge surrounding simulation methods within an end-to-end supply chain and to guide research agenda by indicating generic elements required to model such systems using simulation. The authors examined 255 publications from 21 peer-reviewed journals in the field of an end-to-end supply chain and simulation using a systematic literature review approach. Each publication was thoroughly reviewed to capture best practices and key characteristics relative to simulation modelling techniques used in the context of complex end-to-end supply chain systems. This allowed for identification of generic elements required to model such systems, which were grouped into Structural, Computational and System Organization pillars. This research contributes to the body of knowledge by defining generic aspects of simulation modelling techniques used to study properties and attributes of complex end-to-end supply chains. The paper advances the theoretical understanding of the simulation methods used and applicability of simulation methodology in modelling end-to-end supply chain systems. The research presents the key findings from the use of simulation in modelling end-to-end supply chains and the main ways in which this modelling technique has informed research and practise.
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The use of transport pallets is now ubiquitous in the distribution of an extensive range of products worldwide. This study focuses on comparisons of the potential environmental impacts of two main types of transport pallets, based on a life cycle assessment (LCA); those made from wood and those made from primary or recycled plastic. Both the weight and volume of the transported cargo were selected as basis for functional unit selection, as well as was the transport distance over which the pallet is used. The ReCiPe 2016 characterization method for the expression of environmental impacts was applied. Wood pallet were found to be more environmentally friendly than primary plastic pallet if energy recovery takes a place at the end of its life cycle. If secondary plastic is used for pallet production, their environmental impacts are lower in several impact categories than wood pallets without energy recovery at their end-of-life. If a wood pallet is disposed of in a landfill, its environmental benefits are substantially lower; however, it is still more environmentally friendly than a primary plastic pallet. An important factor in assessing the environmental impact of the pallet life cycle is its weight. Pine wood when used as an alternative to spruce for pallet production was found to have fewer environmental impacts. The weight of the pallet increases the overall weight of the transported cargo, which in turn is reflected in the overall environmental impact of the shipment. The following groups of processes, identified as having significant adverse effects on the environment, are significantly involved in the environmental impacts of wood pallets: disposal, transport to processing, length and shape forming of logs, sawdust collection and chipping, production of trees with bark, and internal transfer of wood logs. For plastic pallets, the processes most involved in environmental impacts were: melting and molding of the plastic, primary plastic production, transport to processing, and cooling of the plastic.
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Nowadays, pallets are the most widely used shipping facility in supply chain system. In fact, pallets are essential assets for all firms, especially for logistics service providers (LSPs). Analyzing Pallet Management Systems From a logistical perspective, a new research trend has emerged in recent decades. Open or closed loop networks are currently used worldwide for pallet logistics. Closed loop systems are complex networks because of the design and management of recursive logistics processes, but on the other hand, they are the most environmentally and economically effective networks available. The purpose of this research is to describe important factors (such as pallet logistics network, switching system) in the design of closed loop pallet management systems. This study seeks to present a mathematical model to optimize the number of pallets purchased in a closed-loop supply chain, taking into account the constraints available. Finally, the proposed model is solved using GAMS 24.7.3 software
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The current public and private policies pursuing environmental sustainability targets mandate incisive management of packaging waste, starting with those sectors that use virgin materials most. Food industries and food supply chains adopt huge volumes of plastic crates, cardboard boxes, and wooden boxes as transport packaging, thereby representing a hotspot and an urgent call for scholars and practitioners to address. Whilst wooden and cardboard boxes are disposable solutions, plastic containers can be employed as infinitely reusable and recyclable packages but require complex logistic systems to manage their life cycle. Optimization techniques can be exploited to aid the design and profitability of such complex packaging networks. This paper falls within the scarce literature on the design of pooling networks for reusable containers in the food industry. It proposes a strategic mixed-integer linear programming model to design a closed-loop system from the perspective of the packaging maker responsible for serving a food supply chain. The container's lifespan, i.e. the number of cycles a package can be reused before recycling, represents a crucial aspect to consider when modeling such networks. Incorporating lifespan constraints within the proposed closed-loop network design model is the main novel contribution we provide to the literature. This model is applied to a real-world instance of an Italian package pooler operating with a consortium of large-scale retailers for the distribution of fruits, vegetables, bakery, and meat products. A multi-scenario what-if analysis showcases how the optimal network evolves according to potential variations in the packaging demand, as well as in the container lifespan, demonstrating how to lead packaging makers to the profitability and the long-term sustainability of the closed-loop network.
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Reusable transport items (RTI), as a sustainable solution to the increasing packaging wastes generated along with the ever-growing globalized supply chains, create both challenges and opportunities to organizations for their management. A trend of organizations outsourcing their RTI activities explains the rapid emerging of a third-party RTI pooler. Yet few research studies have been conducted from the perspective of the RTI pooler for optimizing their customer allocation, and few on the decision support model for a practical case in the developing economies. This research intends to fill in this gap. Motivated by a case study of a leading RTI pooling company in China, this research proposes to implement a sharing strategy into the daily planning operation of distribution and routing. A decision support framework is developed to optimize the distribution flows and dispatching vehicle routes by the use of a two-stage solution process. Empirical results demonstrate an economic savings of 28.1% in the transportation costs along with environmental and social advantages implicated by the shortened travel distance of vehicles.
Chapter
In such a variant market, establishment of fixed warehouses for a company remains very risky. Short or medium-term rental warehousing is therefore an effective solution. In this study, we are working on the optimization of reusable containers management in Closed-Loop Supply Chain where warehouses localization is variable during a multi-period planning horizon. We proposed an integer-linear-programming model considering, in an original way, the reusable containers management as Assignment Problem, Dynamic facility Location Problem and Dynamic Lot-sizing Problem. The numerical results show the accuracy of the model and the advantage of considering variable warehouses.
Chapter
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Recommendation systems are a part of the personalization of access to information, to give user items that correspond to his expectations, to simplify the navigation, make it fast and to guide the customer to the most relevant elements. In This article we highlight on the different types of approaches already used in recommendation systems, like collaborative filtering, content-based approach, demographic and hybrid recommendation. We discuss the conception of our recommendation system that combine many approaches such as demographic filtering, sentiment analysis in social media navigation traces to upgrade the performance of our system.
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A logística reversa vem ganhando cada vez mais relevância em sua implantação devido a fatores ecológicos, de competitividade, estratégico e econômico que visam alavancar o sucesso e crescimento das empresas. Para isto foi feita uma pesquisa aplicada, de abordagem qualitativa, através de um estudo de caso. Este artigo tem por objetivo sugerir uma melhoria na forma de controle de paletes e chapatex da empresa Vonpar Refrescos S/A, a fim de conseguir um processo mais eficaz de recolhimento destes materiais e uma redução de custo com novas aquisições. Através deste estudo, com as melhorias sugeridas para redução de custo, a empresa conseguiu ter um maior controle dos bens cedidos, uma melhor relação de confiança e comprometimento entre as partes envolvidas no processo, o inventário dos bens se tornou mais preciso e melhor aplicado podendo ser feito em periodicidade menor, além da redução do número de compras feitas desses materiais, gerando economia financeira para a empresa.
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Rural medical facilities in Zimbabwe have consistently faced energy-related challenges particularly in powering machines that are critical in their operations. The situation has been further worsened by the inconsistent supply of electricity from the national grid. This study aimed to investigate the supply chain challenges associated with the use of liquid petroleum gas (LPG) in rural medical facilities in Zimbabwe. The research followed a quantitative approach in which 97 respondents were surveyed. The respondents consisted of medical and maintenance staff drawn from selected provincial medical facilities in Zimbabwe, private LPG suppliers as well as non-governmental organisations involved in the procurement and supply of LPG. The collected data were analysed with the aid of the Statistical Package for Social Scientists (SPSS version 24.0).
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Attention with reverse logistics networks has increased during the last decade since their economic impact has been increasingly important and as environmental legislation has been becoming stricter. In this paper, A multi-period multi-echelon forward–reverse logistics network design under risk model is developed. The proposed network structure consists of three echelons in the forward direction, (suppliers, facilities and distribution centers) and two echelons, in the reverse direction (disassembly, and redistribution centers), first customer zones in which the demands are stochastic and second customer zones in which the demand is assumed to be deterministic, but it may also assumed to be stochastic. The problem is formulated in a stochastic mixed integer linear programming (SMILP) decision making form as a multi-stage stochastic program. The objective is to maximize the total expected profit.
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Reverse logistics has evolved to assist companies in recognizing potential benefits and overcoming challenges associated with its operations and strategies. Reverse logistics has a considerable influence both on production planning and management and on the determination of optimal production and storage capacities. Product recovery, which encompasses reuse, remanufacturing and materials recycling, requires a structured reverse logistic network in order to collect products efficiently at the end of their life cycle. Present work describes simulation modelling of reverse logistics networks for collection of EOL products for XYZ Limited Company of North India. This company is involved in production of acid batteries for commercial use. Simulation model presented in this work, allows the user to analyze the future performance of the network and to understand the complex relationship between the parties involved. The findings from the simulation suggest that the model calculates cycle time, transfer time, transfer cost, and resource utilization in a predictable manner. Simulation model was developed using Arena 11.0 simulation package.
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Based on environmental, legal, social, and economic factors, reverse logistics and closed-loop supply chain issues have attracted attention among both academia and practitioners. This attention is evident by the vast number of publications in scientific journals which have been published in recent years. Hence, a comprehensive literature review of recent and state-of-the-art papers is vital to draw a framework of the past, and to shed light on future directions. The aim of this paper is to review recently published papers in reverse logistic and closed-loop supply chain in scientific journals. A total of 382 papers published between January 2007 and March 2013 are selected and reviewed. The papers are then analyzed and categorized to construct a useful foundation of past research. Finally, gaps in the literature are identified to clarify and to suggest future research opportunities.
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Pallet management, which involves direct and reverse logistic models, may represent a critical activity for logistics provider firms. Pallets are needed in order to ship products from the produc-ers/distributors to the retailers. Recently, pilot projects have demonstrated that performances of pallet management system could be improved by an advance tracking system based on Radio Frequency IDenti-fication (RFID). RFID systems can increase effectiveness in acquiring data about properties of any entity – such as pallet – that can be physically identified and traced. In this paper, an effective model, based on the well known Activity Based Costing (ABC) technique, is proposed to evaluate economic feasibility of different design decisions regarding the whole pallet management system of a logistics provider. The model has been applied to different operational scenarios in a real case study: The scenario analysis aims to compare different configurations of pallet management systems based on RFID applications. Results obtained highlight how an RFID application is economically sustainable to reduce the overall cost of pal-let management activities in different operational conditions. Finally, based on cost structure previously evaluated by the ABC model, an investment evaluation based on traditional indexes (e.g. ROI, Net Present Value, etc.) has been carried out. Therefore, the integration of the ABC model with traditional investment analysis has improved the effectiveness and the reliability of the feasibility study for evaluating RFID investments in pallet management.
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An efficient management of product returns is a strategic issue. Nowadays, customer expect manufacturer to develop a reverse logistics system so that the returned products can be recovered. With the development and advancement of reverse logistics practice, the selection of reverse logistics operating channels becomes more important. There are three operating channels of reverse logistics; Manufacturer Operation, Third Party Operation, Joint Operation. In this paper a hybrid methodology based on Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) under fuzzy environment is proposed for the selection and evaluation of reverse logistics operating channels. An example is included to validate the proposed method. This method helps the decision maker to select the best technology that meets the requirement.
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Purpose The purpose of this study is to investigate how the use of information technology (IT) and supply chain management initiatives (information sharing and collaboration) impact a company's performance in reverse logistics (RL). Design/methodology/approach A survey based on a previous exploratory research and literature review was sent out to 600 US companies having substantial activities in RL. Issues addressed in the survey, such as IT types deployed, IT operational attributes, information sharing, and collaboration, involve multiple parties in multi‐tier RL networks, extending beyond a simple buyer‐supplier dyad. Findings The results revealed that the type of IT used per se did not have a differential impact on a company's performance in RL. However, IT operational attributes positively affected RL performance and information sharing and collaboration are critical to RL performance. Practical implications Investment in IT alone cannot improve a company's performance; managers should take full account of IT attributes when deciding IT in RL. IT operational attributes tend to support one another – an improvement in one would lead to improvements in the others. With no exception in RL, companies need to share information and collaborate with their partners. Originality/value The paper reports an empirical survey of the IT use and collaboration practices in RL, and provides insights into the relationships and impacts of IT, RL operational attributes, information sharing, and collaboration on one another as well as on RL performance.
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The authors investigate a three-stage supply chain of a multinational firm in the automotive components industry. Factories, located in Italy, carryout the manufacturing process of components for braking equipment. The first two manufacturing sites provide the final assembly site with components for original equipment (OEC); they also produce components for the aftermarket (AMCs). The demand for OECs is dynamic and is deterministically known on a one-year horizon. On the other hand, the demand for AMCs is uncertain and is distributed according to probability density functions. To face such complexity in evaluating the supply chain performance, a dynamic and stochastic simulation model is proposed. Two different scenarios are investigated according to whether the manufacturing sites are onsidered as independent business units or as units that obey strict production requirements of the supply chain. The results obtained confirm the effectiveness of the model, which reveals a suitable tool for tactical/strategic decision making.
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Purpose – This paper seeks to frame and model the environmental issues and impacts associated with the management of pallets throughout the entire life cycle, from materials to manufacturing, use, transportation to end‐of‐life disposal. Design/methodology/approach – A linear minimum cost multi‐commodity network flow problem is developed to make pallet‐related decisions based on both environmental and economic considerations. Findings – This paper presents a review of the environmental impacts associated with pallets by life cycle stage. The types of materials used to fabricate pallets, the methods by which they are treated for specific applications, and various pallet management models are described with respect to embodied energies, toxicity and emissions. The need for companies to understand the cost, durability, and environmental impact tradeoffs presented by pallet choices is highlighted. The paper introduces a model to assist in choosing both how pallets are managed and the material they are constructed of that balances these tradeoffs. Originality/value – There is limited research on the environmental impact of different management approaches of large‐scale pallet operations. The proposed model and approach will provide companies seeking to engage in more sustainable practices in their supply chains and distribution with insights and a decision‐making tool not previously available.
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Purpose This research aims to conduct an exploratory analysis into current industrial reverse logistics practice in business‐to‐business (B2B) and business‐to‐customer relationships (B2C), and determine the financial and operational impact of customer non‐compliance in returning distribution equipment back to their source. Design/methodology/approach The analysis was conducted over multiple industry sectors using qualitative research techniques. The research sample included seven industry sectors, providing a response rate of 72 per cent (53 sources approached). The focus was on both B2B and B2C relationships to determine similarities and differences in financial and operational repercussions. Findings The research findings indicate that the efficacy of the reverse logistics system can be undermined by lack of customer compliance, with losses of up to £140 million (B2B). Research limitations/implications In both B2B and B2C relationships, there is evidence of suppliers suffering financial loss due to customer non‐compliance. Due to the small scale of the analysis and the breadth of the industry sectors investigated, these results are not generalisable, but do indicate that this is an area, which could undermine supply chain effectiveness. Practical implications Non‐compliance of this nature carries a direct and highly applicable cost for manufacturers and distributors in the practitioner arena. Suppliers within industry need to acknowledge this issue and manage their reverse logistics more effectively. Originality/value This paper adopts an innovative focus on an understated feature of the reverse logistics cycle, i.e. the recycling of distribution equipment used to transport outbound and returned products. The paper identifies a range of options, which practitioners can use as guidance when managing the returns system.
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Goal, scope and backgroundThe industrial packages sector has great importance for the transport sector in Europe. These containers, mainly wooden pallets and spools, are subject to European legislation, which promotes their reuse and recycling. This study uses life cycle assessment (LCA) to assess the environmental impact of the current management system in this sector and the benefits and drawbacks of different reuse intensities as a waste prevention strategy as opposed to the recycling option. Materials and methodsIn this paper, four case studies located in Spain and representative of the wooden package sector in Europe are analysed: high reuse pallet, low reuse pallet, low reuse spool and null reuse spool. For the LCA study cases, the functional unit is that required to satisfy the transport necessity of 1,000t by road. The impact and energy consumption assessment methods used are CML 2 Baseline 2000 and Cumulative Energy Demand. Data are mostly provided by the leading enterprises and organisations in this sector. ResultsThe paper provides, as a first result, a comprehensive inventory of the systems under study. Secondly, our assessment shows that the systems with higher reuse intensity show a reduction in energy and wood consumption and all the environmental impact categories except for the global warming potential from 34.0% to 81.0% in the pallet study cases and from 50.4% to 72.8% in the spool ones. This reduction is at the expense of the maintenance stage, which on the contrary increases its impact, although it is still relatively small—less than 7% in all the impact categories and flow indicators of the study cases. The highest impact stages are transport, raw material extraction and the process chain. The final disposal and maintenance stages are the lowest impact, contributing at most to less than 30% of the impact in the pallet study cases and 10% in the spool cases. DiscussionWood consumption (WC), directly related to the number of containers needed to satisfy the functional unit, is the main factor in determining the impact of the stages, especially in the raw materials extraction and process chain stages, assuming that these are undertaken with the same technologies in all the case studies. Other variables, such as the management system, the maintenance index and the final disposal scenario, affect the impact of the remaining stages: transport, maintenance and final disposal. The global warming potential results obtained demonstrate the environmental benefits of using containers made of a renewable resource such as wood instead of using other materials, but these results are not expected to prioritise the lower reuse systems because of their better performance in this category. ConclusionsReuse, a strategy capable of reducing the environmental impacts of the wooden container systems, is preferable to recycling, while the package maintenance tasks are still feasible. Therefore, reuse, combined with recycling as final disposal, should be encouraged to reduce the demand for natural resources and the waste generated. RecommendationsBased on these results, attention should be paid to the maintenance stage, which, being the lowest-impact one, could substantially reduce the impact of the remaining stages.
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Purpose This paper aims to explore the perceived impact of packaging logistics on the efficiency of freight transportation (EOT), and examine the interaction and relationship between packaging logistics and EOT. Design/methodology/approach The paper set up the conceptual model with seven hypotheses from the findings of previous literatures, and this model was tested with data and SEM. Findings The paper provided empirical insights about the perceived impact of packaging logistics on EOT and clarified the relative impact levels in the relationship between packaging logistics and EOT. Research limitations/implications In spite of the chosen research approach, the perceived impact of information system on EOT may lack generalisability. Therefore, researchers are encouraged to test the proposed propositions in further studies. Practical implications Findings of this study can be used by practioners to improve EOT and by researchers to investigate further studies. Originality/value The paper fulfilled a need from previous literatures to clarify the interaction and relationship between packaging logistics and EOT.
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This paper studies a closed-loop supply chain that uses containers for transporting products from a supplier to a retailer. At the retailer, used containers are collected and returned to the supplier. The supplier inspects returned containers, and either repairs and reuses or disposes them. This paper studies the case where the fraction of containers that are returned to the supplier is stochastic, and where an RFID system can be used to support the tracking of container positions in the supply chain. The use of RFID leads to improved information on the return of containers and better return predictability as well as higher return rates, which we model as an increase in the mean return rate of containers and a reduction in return variance. The paper first develops a mathematical planning model for this scenario, and it then studies how the use of RFID impacts the performance of the system. In addition, it analyzes under which conditions the use of RFID is economical, and in which situations traditional container systems should be preferred.
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Backward on-line job change scheduling, referring to the on-line job change scheduling of a current processing step to satisfy the job change schedule of the subsequent processing step, is a common problem in modern Fabs. In this research, the production system-based simulation methodology is proposed to solve the backward on-line job change scheduling problem. This simulation is processed by the state change that is caused by an execution of the operator, and it finds the schedule with the best handle values considering the current status. Several simulation runs with diverse handle values were required to find the best values because the status of the shop floor can change dynamically. To validate the simulation, this production system-based simulation is applied to the on-line job change scheduling of a tire belt processing step as part of the tire manufacturing process.
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This article discusses a study on reverse logistics in which a returnable packaging model was developed in order to minimize waste generation and increase the competitiveness of the company studied by reducing costs and resource consumption and minimizing environmental impacts. The objective of this study is to present a case study on reverse flow of returnable packaging to replace a disposable packaging system used by a company located in Joinville, Santa Catarina, Brazil to export machined engine heads to Peterborough, UK. As a result, the returnable packaging model consumed 18.00% less material than the disposable packaging model, reducing costs. Furthermore, the model developed provided greater protection to the products exported and minimized waste generation at the final customer. Other logistic benefits were reduction in the volume occupied and weight of empty packaging during reverse flow and a cycle time of 105 days. Additionally, the unit cost of the returnable packaging was R$ 13.57 per engine head, a satisfactory outcome for the company studied. With regard to environmental performance, the returnable packaging model proved the best alternative since it has less environmental impacts compared to those of the disposable packaging model. The practice of reverse logistics has shown benefits that contribute technically, economically, and environmentally to business sustainability.
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For pallet loading operations, it is found that space optimization does not necessarily lead to profit optimization, which is the ultimate goal of forwarders after numerous site evaluations and end-user feedbacks. To the best of the authors’ knowledge, there are only a few research studies related to profit optimization in this area. This paper presents a hybrid approach, using heuristic and genetic algorithms (GA), for solving the profit-based multi-pallet loading problem which was mathematically formulated as a nonlinear integer programming problem. The major novelties in this paper are the simultaneous consideration of priority for loading more profitable cargoes and cargo stability in heuristic and innovatively designed crossover and mutation operations in GA to suit the profit optimization. To validate the approach, simulations were carried out with 10 weakly and 10 strongly heterogeneous sets of cargoes. The simulation results obtained by our proposed GA were compared with those obtained by two other stochastic search methods, namely simulated annealing (SA) and Tabu search (TS), as well as a nonlinear integer programming-based method, branch-and-bound (BB). The results showed that GA can search more profitable solutions than SA, TS and BB in this multi-pallet loading problem.
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Due to growing economic environment and the introduction of new technologies in marketing, another topic of great interest to logistics today is the use of contract or third party services. In the complicated business world, the company is involved in reuse, recycling, and remanufacturing functions using a third party logistics provider which has an impact on the total performance of the firm. In the development of the reverse logistics concept and practice, the selection of providers for the specific function of reverse logistics support becomes more important. After scanning the surplus of literatures, it was concluded that multiple dimensions and attributes must be used in the evaluation and selection of 3PRLP.The attributes play an important role in selecting a third party reverse logistics provider (3PRLP). Interpretive structural modeling (ISM) methodology is adopted in this model, which can be used for identifying and summarizing relationships among specific attributes for selecting the best third party reverse logistics provider among the ‘n’ 3PRLPs.
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Logistic network design has an important and strategic platform in an efficient and effective supply chain management, and usually involves multiple and conflicting goals, such as cost/profit, resource balance, customer responsiveness, quality, and the like. Besides, due to the implementation of government legislation, environmental concern, social responsibility and customer awareness, companies have been forced by customers not only to supply environmentally amicable products but also to be responsible for the returned products. Hence, this paper presents a stochastic multi-objective model for forward/reverse logistic network design under a uncertain environment including three echelons in forward direction (i.e., suppliers, plants, and distribution centers) and two echelons in backward direction (i.e., collection centers and disposal centers). We demonstrate a method to evaluate the systematic supply chain configuration maximizing the profit, customer responsiveness, and quality as objectives of the logistic network. The set of Pareto optimal solutions is obtained and also financial risk relevant to them is computed in order to show the tradeoff between objectives. The results give important insight for fostering the decision making process.
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The last few years have seen increasing recognition of the work of logistics service providers, as well as the significance of functioning supply relationships. This paper proposes an alternative view of supply management that builds on the observation that traditional supply chain management focuses on logistics clients rather than the service providers themselves. The paper utilizes the 4 Resource Interaction tool to illustrate how a logistics service provider faces different idea structures and activated structures than its clients in three different markets. The resulting resource perceptions and preferred resource combinations create tensions and tradeoffs between the logistics service provider and its clients. Unchaining logistics from the conventional chain structures achieves a more comprehensive understanding of interactions between shippers and logistics service providers.
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Purpose In a growing number of competitive sectors with closed‐loop supply chains, the reverse component has become an inherent part of the business, not to mention a core competence; hence the need to have performance measures that can be used to provide an accurate diagnosis of the state of the supply chain by addressing both its forward and its reverse components. It is also important to identify the level of existing integration between parties, as this has been associated with supply chain performance. This paper seeks to address this issue. Design/methodology/approach Elements gathered from the literature reviewed are used to present a set of measures that can be applied for auditing purposes in: the forward supply chain; product returns and reverse logistics; flows of materials and information and integration between supply chain tiers. To illustrate the use of the proposed set of measures for auditing purposes a case study involving a major European mobile phone network operator was analysed using the operator's own brand of handsets characterised for having a closed‐loop supply chain. Findings The proposed set of measures for auditing purposes provide an overall picture of the performance of a closed‐loop supply chain by revealing high levels of stock for the products analysed, consequence of the difficulty to generate accurate forecasts and the accumulation of high quantities of product prior to launch. Also the methodology presented in this paper identifies links between product returns (faulty and non‐faulty) to operations in the forward component of the supply chain (design, sourcing, manufacturing and forecasting) and also indicates how performance is affected because of integration. Research limitations/implications The proposed set of measures for auditing purposes is relevant to closed‐loop supply chains which are related to products with short life cycles and during their lifetime can experience faulty and non‐faulty returns. The scope of the study presented may look limited; however, the application of the performance measures presented in this research can become a fundamental component of larger audit exercises. Further research should be carried out with supply chains on products with lifetime cycles that span long periods of time. Practical implications For industry sectors with closed‐loop supply chains, the availability of a set of measures that address the forward and reverse components plus integration can provide a detailed picture of the performance of value streams over traditional approaches to measurement that focus on only one component of the supply chain. The set of measures has the potential to be used to achieve better customer service and reduction in costs involving shipping, warehousing, labour and call centres. Originality/value The contribution of this research on closed‐loop supply chains is a methodology that defines performance measures for auditing purposes of the forward and reverse components of supply chains and assists in assessing the importance of integration between different tiers of supply chains.
Article
Purpose The purpose of this study is to identify the critical components of the reverse logistics (RL) disposition decision‐making process and suggest a decision framework that may guide future investigation and practice. Design/methodology/approach The authors utilized a problem‐driven content analysis methodology. RL literature from 2000 through 2010 was content analyzed to determine which components may impact a firm's RL disposition decision. Findings The authors extrapolated seven RL disposition decision components from a compilation of 60 variables identified in the literature. Practical implications and suggestions for future research are offered, and a RL disposition decision‐making framework is presented. Research limitations/implications Although methodological techniques were carefully followed, the nature of a content analysis may be subject to author bias. Future investigation and use of the framework presented will verify the findings presented here. Practical implications This study identifies seven components that should be considered when deciding which RL disposition alternative should be adopted and integrates these components into a decision‐making framework. Supply chain professionals who refer to this framework during the decision process will benefit from a more comprehensive analysis of potential RL disposition alternatives. Originality/value Congruent with recent assertions suggesting that RL research is evolving from an operational‐level focus to a holistic business process approach for maximizing value recovery, this study synthesizes operational‐level research to develop a practical framework for RL disposition decision‐making.
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Purpose The purpose of this paper is to identify and systematically discuss generic forms of contract logistics services and their distinct underlying approaches for fulfilling their respective value propositions. A general frame of reference is developed that addresses the value proposition, as well as the value creation architecture that leads to generic business model configurations for contract logistics services. The framework is built upon the basic notions of service theory, competence research and the resource based view. Design/methodology/approach The paper combines service theory with work of organizational theory and develops an analytical framework based on conceptual considerations. First empirical results are additionally used to support and illustrate the key outcomes. Findings Combining the dimensions of integration power and intangible knowledge creation, the authors are able to specify generic types of contract logistics services. Thereby the authors deducted for every type the distinct requirements for service fulfilment and present this in a specific frame of reference. Research limitations/implications The illustrated empirical results are still limited due to a limited sample size for the interviews. Additional empirical work on the whole third party logistics (3PL) market is suggested. Practical implications The paper provides generic types of 3PL services and a characterization of properties and architectures of respective business models. Combined with first empirical results, the paper's results offer insights for practitioners to rethink their value propositions and potentially redesign their service architectures. Originality/value The paper delivers a set of distinct business models for 3PL services reflecting the customer's, as well as the service provider's point of view. It addresses specific aspects of the generation/production of required services that are so far mostly neglected.
Article
Purpose The purpose of this paper is to explore the impact of the product residual value (PRV) and the loss of value over time of returned products in the reverse supply chain configuration. It also examines whether or not the distinction of Fisher's functional and innovative products holds for the reverse supply chain. Design/methodology/approach In order to identify the relevance of the Fisher model, the model needs to be recast in terms of PRV, which, in this context, is considered the independent variable in the reverse logistics arena. Products defined as innovative in Fisher's taxonomy correspond to disposed products with high residual value, whereas functional products correspond to disposed products with low residual value. Furthermore, the PRV and the speed at which returned products lose their value are considered in order to determine the configuration of the reverse supply chain that allows for recapturing most of the PRV. These notions have then been tested by analyzing two reverse supply chains with a case study research methodology. Findings The findings show that low PRV is associated with second‐class recovery options (recycling and energy recovery) and that high PRV is associated with first‐class recovery options (reconditioning and remarketing). When the recovery option is recycling, time is not relevant, the primary objective is cost reduction (efficiency), the chain is centralized, and actors and phases of the reverse chain are determined by the specificity of the recycling process. When the recovery option is reconditioning, time is primarily relevant, tradeoffs between costs and time efficiency are necessary, the chain presents a centralized structure, and the presence of other types of actors and phases influences the structure of the reverse supply chain. Research limitations/implications The focus is restricted to the industry of electrical and electronic products. Practical implications Based on the outcome of the study, managers are able to determine the basic prerequisites for the design of their reverse supply chains. Originality/value Previous literature suggests that when the PRV is high, early product differentiation is necessary, and the chain is therefore decentralized. The paper demonstrates that this is not confirmed in the case of low returned volumes and high reconditioning quality standards.
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In this study, we focus on pricing and production decisions in utilizing reusable containers with stochastic customer demand. We consider a manufacturer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers and (ii) returned containers from customers. The return quantity depends on both customer demand and the acquisition fee determined by the manufacturer. The unit cost of production using brand-new containers is different than the unit cost of reusing returned containers. The customers are indifferent between brand-new and recovered products. We also consider resource restrictions on the production operations. In this setting, we investigate the optimal pricing and production decisions in order to maximize the manufacturer's profit. We characterize the optimal acquisition fee and the optimal order quantity of brand-new containers analytically and investigate the effect of parameters through an extensive computational study.
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a b s t r a c t In this paper, a mixed integer linear programming (MILP) formulation is developed for the design and planning of supply chains with reverse flows while considering simultaneously production, distribution and reverse logistics activities. It is also considered products' demand uncertainty using a scenario tree approach. As main goal the model defines the maximization of the expected net present value and the results provide details on sizing and location of plants, warehouses and retailers, definition of processes to install, establishment of forward and reverse flows and inventory levels to attain. The model is applied to a representative European supply chain case study and its applicability is demonstrated. Ó 2012 Elsevier B.V. All rights reserved.
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We propose a branch and cut algorithm for the Pallet Loading Problem. The 0-1 formulation proposed by Beasley for cutting problems is adapted to the problem, adding new constraints and new procedures for variable reduction. We then take advantage of the relationship between this problem and the maximum independent set problem to use the partial linear description of its associated polyhedron. Finally, we exploit the specific structure of our problem to define the solution graph and to develop efficient separation procedures. We present computational results for the complete sets Cover I (up to 50 boxes) and Cover II (up to 100 boxes).
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This paper investigates a number of operational and environmental performance measures, in particular those related to transportation operations, within a closed-loop supply chain. A mathematical model in the form of a linear programming formulation is used to model the problem, which captures the trade-offs between various costs, including those of emissions and of transporting commodities within the chain. Computational results are presented for a number of scenarios, using a realistic network instance.
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The growing importance of logistics activities that span the boundaries of supply chain firms has put an emphasis on supply chain relationship management. Based on the existing marketing concept on relational benefits and the supply chain management literature on consumer satisfaction, this research evaluates logistics service performance from the eyes of manufacturers. Using data collected from US manufacturing firms, the study has identified the factors that influence manufacturer's satisfaction, as well as the key to understanding the benefits-satisfaction-loyalty triads in supply chain relationships. The contribution of the paper includes developing a conceptual model, adding new theoretical insights into benefits-satisfaction-loyalty triad that has been applied by manufacturers and LSPs, and providing some meaningful perspective on how to strategically assess the use of logistics providers so as to transform a logistics firm from a tactical service provider to a hand-in-glove strategic partner.
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This paper describes an Integer Programming model for generating stable loading patterns for the Pallet Loading Problem under several stability criteria. The results obtained during evaluation show great improvement in the number of stable patterns in comparison with results reported earlier. Moreover, most of the solved cases also ensure optimality in terms of utilization of a pallet.