In a closed loop, you own pallets (wood or plastic) and move them between your plants, warehouses or dedicated customers, then retrieve them. Cost per trip depends on how many trips each pallet makes, which is limited by its rated life and by loss.
The formula used on this site: trips per pallet N = min(rated trips, 1 ÷ loss rate), and cost per trip = (price − end-of-life salvage) ÷ N + retrieval + handling + loss rate × price + repair.
See also
- Loss rate
- The share of pallets lost, stolen or scrapped on each trip in a loop.
- Pallet float
- The number of pallets a closed loop needs in circulation to keep shipping.
- Cost per trip (CPT)
- The total cost of using a pallet for one shipment, including everything beyond its price.
- One-way pallet
- A pallet that leaves with the shipment and is not returned to the shipper.