Dynamics in Closed-Loop Pallet Management: A Case Study Approach

The pallet is the most common form of packaging used in the world for product handling, storage, and transportation. Closed-Loop Pallet Management (CLPM) has gained significant attention as an efficient approach for goods handling, storage, and transportation. This study focuses on developing a System Dynamics model for Closed-Loop Pallet Management (SDCLPM) using a case study. By utilizing a system dynamics approach, the dynamic behavior of the factors involved in the CLPM process is identified and analyzed. The findings emphasize the significance of accurate forecasting in reducing pallet purchases and overall pallet management costs. Moreover, the research reveals the mediating role of moving pattern, volume, weight, contamination ability, and the varieties of goods when deciding the required pallet quality. Supplier capability emerges as a critical consideration in the system, and selecting pallets made from more durable materials proves to be an effective strategy for reducing the need for new pallet purchases and minimizing total pallet management costs. The findings of this study provide insights into considerations for effective CLPM systems.