Assessing the Viability of Reusable Packaging: A Relative Cost Approach

While environmentally friendly operations can provide a positive public image, firms wishing to reduce their environmental impact must initiate activities that reduce cost as well. Reusable container systems are one means of reducing environmental waste, but the economics of such systems has been somewhat uncertain to date. This research proposes a cost model to evaluate the combined impact of logistics and packaging costs on the container decision. Additionally, a simulation/regression analysis is used to analyze model results to determine the relative importance and interactions between container decision factors.