Inventory control for reusable express packaging with under sharing policy

Abstract

AbstractOnline shopping and e‐commerce have contributed significantly to the environmental pollution caused by the generation of packaging waste. In response to this issue, reusable express packaging has emerged as a promising solution. However, the widespread adoption of reusable express packaging faces significant challenges, namely, the initial investment burden and the complexities associated with recycling. To address these challenges and enhance resource utilization efficiency while minimizing supply–demand discrepancies, inventory sharing has emerged as an effective measure. We first establish an inventory model for reusable express packaging, which takes into account stochastic loss rates and customer service level. We further extend our research to scenarios involving both inventory sharing and competition. We substantiate the value of inventory sharing and the impact of competition through comprehensive numerical analyses. Our findings demonstrate that inventory sharing contributes to enhancing the profits of express delivery companies, especially with a more pronounced effect in companies where competition exists.