Incentivising-by-penalty: The optimal return strategy for a reusable transport item rental platform

The sustainability of modern supply chains is intricately linked to the efficiency of reusable transport items (RTI). This study addresses the challenge of ensuring the timely return of RTIs by customers, as the underutilisation of RTIs leads to increased environmental impacts. By introducing a data-driven penalty scheme designed to incentivise timely returns through customised penalties, the study offers an innovative, tailored approach for RTI behavioural operations management. Real-case results showcase the potential of the scheme to enhance return rates, reduce RTI stockpiling, improve customer relations and mitigate environmental degradation. The authors findings reveal diverse impacts associated with the implementation of balanced penalties that align with customers’ heterogeneous penalty sensitivity and demand level variability, thereby enhancing the effectiveness of the penalty scheme. These insights also offer valuable guidance for practitioners and policymakers seeking to enhance management efficiency and promote environmental stewardship in RTI supply chain operations.

• Record URL:
  • https://doi.org/10.1016/j.trd.2024.104339
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S1361920924002967
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13619209
• Supplemental Notes:
  • © 2024 Elsevier Ltd. All rights are reserved, including those for text and data mining, AI training, and similar technologies. Abstract reprinted with permission of Elsevier.
• Authors:
  • Guo, Min
  • Chan, Hing Kai
  • Kong, Xiang T R
  • Thadani, Dimple R
• Publication Date: 2024-9

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: 104339
• Serial:
  • Transportation Research Part D: Transport and Environment
  • Volume: 134
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 1361-9209
  • Serial URL: http://www.sciencedirect.com/science/journal/13619209

Subject/Index Terms

• TRT Terms: Environmental impacts; Incentives; Logistics; Ownership, leasing and rental; Packaging; Supply chain management
• Subject Areas: Economics; Environment; Transportation (General);

Filing Info

• Accession Number: 01927355
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 16 2024 9:52AM