Managing the conversion to a reusable container program and capturing the total cost with simulation

One compelling reason for converting to reusable containers is the conservation of natural resources. Other than the attractiveness of a potential cost savings, it could provide the firm with a good public relations image worth even more. Many firms are working toward being ISO (international Standards Organization) 14001 certified. ISO 14001 includes in its guidelines the need to reduce pollution. With this in mind, there is a need for better tools to predict cost when converting from disposable to reusable containers. This study provides a tool to estimate conversion cost based on a mathematical model that captures the important elements of cost. It is also based on inventory control methods, design of experiments and a simulation model with animation that captures these cost elements as well. Some guidelines that will help sell a reusable container project to upper management, together with a discussion on implementation logistics, is presented as well.