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Returnable packaging management in automotive parts logistics: dedicated mode and shared mode
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-1173-6713
Department of Industrial Management, National Taiwan University of Science and Technology, Taipei.
School of Economics and Management, Fuzhou University.
2015 (English)In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 168, p. 234-244Article in journal (Refereed) Published
Abstract [en]

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

Place, publisher, year, edition, pages
2015. Vol. 168, p. 234-244
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Industrial Logistics
Identifiers
URN: urn:nbn:se:ltu:diva-12677DOI: 10.1016/j.ijpe.2015.07.002ISI: 000361261000020Scopus ID: 2-s2.0-84940028482Local ID: bd7b49b5-24b2-44e5-a4f6-76b2c5ed0375OAI: oai:DiVA.org:ltu-12677DiVA, id: diva2:985628
Note
Validerad; 2015; Nivå 2; 20150715 (andbra)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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Zhang, QinhongSegerstedt, Anders

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