Selection of pallet management strategies based on carbon emissions impact

Abstract

This work describes the lifecycle of wood pallets as they move through the supply chain and compares the environmental impacts of the three predominant pallet management strategies: single-use expendable, reusable buy/sell, and reusable leased pool. The pallet lifecycle is characterized in five phases: raw material sourcing, manufacturing, transportation and use, refurbishing, and end of life (EOL) disposal. Given that the useful life of a pallet and the environmental impacts that are generated during each phase of the pallet lifecycle vary, carbon equivalent emission functions are developed for each of the three pallet management strategies. The loading and handling conditions that pallets are subjected to as they move through the supply chain are considered as these greatly affect their useful life, and therefore have a significant impact on carbon emissions. In addition, an optimization model is developed to explore the effectiveness of blended or mixed pallet management strategies in minimizing carbon equivalent emissions under various loading, handling, and EOL scenarios. The findings suggest that no single pallet management approach is universally preferred in terms of minimizing carbon equivalent emissions. Under different handling, loading, and EOL conditions and different distribution distance requirements, any of the three available pallet management strategies may be preferred, or a combination of strategies may be required to minimize carbon equivalent emissions. This work can support decision making by logisticians and managers as they seek to minimize the carbon footprint of their operations by adopting practices and adapting the models to their specific conditions.