Expendable versus Returnable Shipping Containers
at Toyota Motor Manufacturing, Indiana, Inc.
Logistics 3.4
Malou Nijssen 1510681 February 14, 2008
Laura Oud ….
Teacher: A.R. van Goor
Table of Contents
Introduction
1. Introduction
Toyota Motor Manufacturing, Indiana, Inc. (TMMI) manufactures Toyota’s first full-size truck. In order to make TMMI as profitable as possible there are a couple of fundamental logistical processes that had to be defined. An important decision that had to be made was the use of appropriate shipping containers for the delivery of parts and materials from suppliers.
TMMI has the following three alternatives:
1. Expendable containers with post-use recycling,
2. Expendable containers with post-use disposal,
3. Returnable containers.
The logistical department of TMMI knows that the least cost alternative thus not have to be the best alternative for Toyota on the long run. We were given the assignment of recommending a containerization system for the new truck that will satisfy as many parties as possible. We examined the issue from different point of view and especially considered the consequences for the main suppliers of TMMI, Transfreight, TMMI third-party logistics provider, and the cost for TMMI itself.
To guide the analysis of the three alternatives we made some necessary assumptions. Below you will find a summary of these assumptions: