Environmental impact analysis of alternative pallet management systems

Pallets, the most common unit-load platform, allow the transportation of goods in an efficient and reliable way. Every year, 700 million new pallets are manufactured and become part of the approximately 2 billion pallets that are in circulation in the U.S. The total life-cycle environmental impact of pallets depends on materials, manufacturing, handling processes, and the disposal practice (end-of-life). Plastic pallets can be lighter and might last longer but their manufacturing processes are energy intensive and could contribute significantly to greenhouse gas (GHG) emissions. On the other hand, wooden pallets can be cheaper and easily repaired but present a shorter life. The ability to control the end-of-life of the pallets and the associated environmental impacts of each scenario allows pallet pooling service companies to provide logistics arrangements that are attractive to those companies seeking to better manage their carbon footprint. The appropriate choice of pallet type (i.e. material, durability, etc.) and management structure (e.g. cost, lease vs. buy, etc.) may lead to a more sustainable logistics operation. The purpose of this study is to provide a model that would determine the impact of pallet materials, manufacturing, distribution, and take back operations on an environmental performance metric (such as carbon dioxide emissions) as well as cost. Mixed integer programming (a minimum cost multi-commodity network flow problem) is used to design the system that determines the mix of pallets (type, quantity, and pallet management system) for product distribution that balances overall environmental impacts and costs according to companies\u27 needs. Such a tool would aid in decision making at the logistics and distribution levels. Results from a case study of a large grocery distributor/retailer in the Northeast is presented

On the Environmental Impacts of Pallet Management Operations

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

Environmental Impact Analysis of Pallet Management

Pallets allow the transportation of goods in an efficient and reliable way. An estimated 2 billion pallets are in use in the U.S. everyday. Approximately 500 million pallets are manufactured annually, the majority of which are made of wood. The environmental impact of pallets highly depends on materials, manufacturing and handling processes. Plastic pallets are lighter and may last longer but their manufacturing processes are energy intensive and contribute to greenhouse gas emissions. On the other hand, wood pallets are cheaper and easily repaired but present a shorter life. Additionally, pallet management systems may dramatically affect the environmental impacts arising from the operation of product transportation and delivery systems. This research proposes a methodology to analyze pallets lifecycle when considering logistics providers and various pallets end-of-life scenarios with respect to environmental performance. Mathematical programming is used to design the system that yields the lowest levels of environmental impacts such as carbon dioxide emissions resulting from pallet manufacturing, distribution and take back operations. This study will assist the decision making of product distributors with respect to pallet providers for an effective sustainable performance, minimizing environmental footprint and cost. A case study from a large grocery distributor/retailer in the Northeast will be presented