Abstract
In a pallet pool, pallets would be delivered through a supply chain. The operation procedure that consists of at least five operation processes as distribution, reposition, recycling, purchase (or rent), and maintenance is quite complex. These pallets are likely to be damaged, lost, destroyed, and so on. So, it is necessary to monitor the pallets using radio-frequency identification technology. However, there is no literature on the management of a pallet pool with both radio-frequency identification–tagged pallets and non-tagged pallets being put into consideration. In our research, an optimization model is presented to manage such a pallet pool. The objective of the optimization model is to minimize the total operation cost of a pallet pool including distribution cost, reposition cost, recycling cost, purchase or rent cost, loss cost, maintenance cost, loading and unloading cost, storage cost, and punishment cost. A particle swarm optimization algorithm is developed in Microsoft Visual Basic. Our numerical example shows that the optimization model and particle swarm optimization algorithm are effective. It is proved that the model and algorithm also can be used to measure whether the investment of a radio-frequency identification system is valuable or not. We proposed some suggestions for the pallet pools management.
Highlights
Pallets are the most popular equipments in the logistics industry
Ren et al.[8] pointed out a multi-scenario model for multi-type pallet allocation over a pallet pool considering the uncertain future without adequate historical data
There is no literature on the management of a pallet pool with both radio-frequency identification (RFID)-tagged pallets and nontagged pallets
Summary
Pallets are the most popular equipments in the logistics industry. There are about 2 billion pallets in circulation in the United States, 280 million pallets in the European Union, and 1.2 billion pallets in China.[1,2,3] The most common pallet materials are wood and plastic.[4,5,6] About 80% of pallets are wooden pallets. RFID could reduce the loss and damage rate and help the managers to make scientific decisions. Ren et al.[8] pointed out a multi-scenario model for multi-type pallet allocation over a pallet pool considering the uncertain future without adequate historical data In this model, the processes of pallet allocation include purchase (or rent), distribution, reposition, and recycling. Based on the lifecycle analysis of pallets in a pallet pool, Ni et al.[33] modeled the pallet allocation considering production, distribution, reposition, recycling, and maintenance. The supplier moves the right number of pallets from the right service station to the customer (distribution). It is helpful to improve the accuracy of the value of a and b This is one of the reasons that more and more pallet service suppliers prefer to use RFID technology
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