Value Analysis and Optimization of Reusable Containers at Canada Post

Rochelle Duhaime, Diane Riopel and André Langevin
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Rochelle Duhaime: Supply-Chain Management, Canada Post Corporation, 2701 Riverside Drive, Suite N0176, Ottawa, Ontario, Canada K1A 0B1
Diane Riopel: Department of Mathematics and Industrial Engineering, Ecole Polytechnique de Montréal, P.O. Box 6079, Succursale Centreville, Montréal, Quebec, Canada H3C 3A7
André Langevin: Department of Mathematics and Industrial Engineering, Ecole Polytechnique de Montréal

Interfaces, 2001, vol. 31, issue 3, 3-15

Abstract: We analyzed the use and sharing of a logistics package, a returnable container, often out of stock, between Canada Post and its large mailing customers. Standardizing and sharing logistical packaging should bring members of a supply chain tangible benefits from productivity and efficiency gains. We determined that inventory imbalance between supply locations and demand locations caused the problem. We found that different accounting methods gave very different results in calculating the benefits. We concluded that there is always a benefit for the mailer. For Canada Post to benefit, however, the container must be returned quickly. We used a minimum-cost-flow model to confirm that the company has enough containers to satisfy demand. With better planning and control of the inventory, Canada Post can prevent disequilibrium between supply and demand.

Keywords: GOVERNMENT—SERVICES; FACILITIES-EQUIPMENT PLANNING—MAINTENANCE-REPLACEMENT (search for similar items in EconPapers)
Date: 2001
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