This study focuses on the capability of reverse logistics within a company and proposes a decision-making model that considers the life-cycle cost of pallet reverse logistics to determine whether to in-sourcing or out-sourcing this capability. Securin...
This study focuses on the capability of reverse logistics within a company and proposes a decision-making model that considers the life-cycle cost of pallet reverse logistics to determine whether to in-sourcing or out-sourcing this capability. Securing competitiveness in a highly competitive market, it is necessary to reduce costs and maximize corporate profits. This study aims to investigate logistics cost reduction measures focusing on resource recycling and reverse costs, and to help companies develop sustainable and cost-effective logistics strategies.
The pooling system can be considered as an externalization and the purchase system as an internalization. This reveals three significant findings. Firstly, as the number of pallet reuse instances increases, the life-cycle cost is decreased in both the purchase and pooling models. Secondly, the costs incurred when applying the pooling model are more economical than purchasing pallets. Lastly, the study examines the effects based on the relative size of internal and external costs within the pooling system.
This study is significant in that it emphasizes the importance of logistics cost management and suggests ways to support long-term success by effectively utilizing resource recycling and reverse costs.