A Statistical Methodology for the Analysis of the Life-Cycle of Reusable Containers

Abstract

The effectiveness of recycling reusable containers as a means of spreading container costs depends on a knowledge of container life-cycle characteristics expressed through parameters such as trip-page, trip duration, loss rate, and expected useful life. Most existing estimation methods in industry are based on static ratios of inventory records. This paper describes, with numerical examples, a rigorous approach for data analysis and modeling which yields the needed parameters through a systematic examination of inherent statistical properties in routinely available data on container issues and returns. The results are important to functions such as pricing, marketing, accounting, and inventory and financial control in a container filling plant.