Deterministic and multi-scenario models for pallet allocation over a pallet pool in a city joint distribution system

Abstract

Pallet pooling is a basis for the operation of a city joint distribution system. Pallet allocation is a key problem for the success of a pallet pool. This article considers a multi-station, multi-period, and multi-type pallet allocation problem over a pallet pool in a city joint distribution system. First of all, we develop a deterministic model to optimally allocate pallets when managers have perfect knowledge of the information that will be available. By case studies, we show that this model can help managers to make scientific decisions. The influence of transportation capacity on decisions is shown by numerical simulation. And we propose managers should use both demand forecasting and leasing and renting tactics to minimization allocation cost. Then, we propose a multi-scenario model to optimally allocate pallets when some uncertain parameters cannot be estimated through historical data. The application of this multi-scenario model is also illustrated.