Optimization Model for Multi-Type Pallet Allocation over a Loose Pallet Pool

Pallets move the world. Currently, there are three methods to manage pallets: transfer of ownership, pallet exchange, and pallet pooling. Particularly, pallet pooling is the most popular management methods among the three. Typical pallet pools include Third-party Owned Pallet Pool, Third-party Managed Pallet Pool, Cooperation Pallet Pool, and Private Pallet Pool. Besides the four traditional pallet pools, we propose another kind of pallet pools named Loose Pallet Pool according to Chinese national conditions. A mixed integer programming model, which regards the maximization profit as the target, is established to optimize pallet allocation over a loose pallet pool. We consider customers choice and recycling time constraints which have not been studied in optimization models of traditional pallet pool allocation. The application of this model is illustrated with an example.