Dan Fikes
@danfikes
Dan Fikes
@danfikes
Key Aspects of Sustainability Processes:
Resource Management:
Efficient use of resources (water, energy, materials) to minimize waste and conserve natural resources.
Waste Reduction:
Implementing practices that reduce waste generation, such as recycling programs, composting, and waste diversion strategies.
# Comprehensive Cost Analysis: Plastic Bins vs. Reinforced Cardboard Storage
For Small-Scale Warehouse Operations (1,000-5,000 sq ft)
## Initial Investment Comparison (Base Unit: 100 Storage Units)
### 1. Traditional Plastic Bins
#### Purchase Costs
Small (12"x8"x6"):
- Unit cost: $8-12
- Quantity: 40 units
- Subtotal: $320-480
Medium (18"x12"x8"):
- Unit cost: $15-20
- Quantity: 40 units
- Subtotal: $600-800
Large (24"x16"x12"):
- Unit cost: $25-30
- Quantity: 20 units
- Subtotal: $500-600
Total Initial Investment: $1,420-1,880
#### Additional First-Year Costs
- Labels: $50
Total First Year: $1,470-1,930
### 2. Reinforced Cardboard System
#### Material Costs (100 Units)
Box Acquisition:
- Reused boxes: $0 (assumed from incoming shipments)
- Sorting labor: $100 (5 hours @ $20/hr)
- Quality inspection: $60 (3 hours @ $20/hr)
Reinforcement Materials:
- Corner supports: $40 ($0.10 x 4 corners x 100 units)
- Bottom reinforcement: $25 ($0.25 x 100 units)
- Edge protection: $30 ($0.30 x 100 units)
- Adhesive/tape: $50
- Total: $145
Labor for Reinforcement:
- Assembly time: $400 (20 hours @ $20/hr)
- Quality checking: $100 (5 hours @ $20/hr)
Additional Setup:
- Labels: $50
First Year Total: $755
## Annual Operating Costs
### 1. Plastic Bins
Replacement Costs:
- Annual breakage rate: 5-10%
- Replacement units: 5-10 bins
- Cost: $71-188
Label replacement: $25
Annual Operating Cost: $96-213
### 2. Reinforced Cardboard
Replacement Costs:
- Turnover rate: 25-30%
- New units needed: 25-30 boxes
- Materials: $145 × 30% = $43.50
- Labor: $500 × 30% = $150
- Total: $193.50
Label replacement: $25
Basic repairs: $100
Annual Operating Cost: $318.50
## Labor Efficiency Explained
Labor efficiency in this context refers to:
1. Box Preparation Time:
- Plastic bins: Ready to use out of box
- Cardboard boxes: Require preparation time for:
* Initial reinforcement
* Size customization
* Repair and maintenance
2. Handling Time:
- Plastic bins: Consistent weight and durability
- Cardboard boxes: Variable handling time due to:
* Periodic reinforcement checks
* More careful handling required
* Replacement preparation
3. Task Breakdown (Hours per 100 units annually):
Plastic Bins:
- Basic maintenance: 5 hours
- Replacement setup: 2 hours
Total: 7 hours annually
Cardboard Boxes:
- Reinforcement work: 20 hours
- Replacement prep: 15 hours
- Basic repairs: 10 hours
Total: 45 hours annually
## Cardboard Recycling Value Analysis
### Baling Potential
Average corrugated cardboard bale:
- Weight: 1,000-1,500 lbs
- Market price range: $50-150 per ton (varies by region and market conditions)
### Revenue Calculation for Replaced Boxes
Assuming 30% annual replacement:
- 30 boxes × average 2 lbs per box = 60 lbs
- Additional scrap from reinforcement: ~20 lbs
- Total annual recyclable cardboard: ~80 lbs
- Potential revenue at $100/ton: $4
### Bulk Recycling Opportunities
For warehouses handling regular incoming shipments:
- Combine storage box recycling with general cardboard waste
- Typical small warehouse monthly cardboard waste: 500-1,000 lbs
- Potential monthly revenue at $100/ton: $25-50
- Annual potential: $300-600
### Recycling Best Practices
1. Bale Formation:
- Clean cardboard only
- Remove all tape and labels
- Compress properly for maximum value
2. Storage Until Sale:
- Keep dry
- Stack efficiently
- Track market prices for best selling time
3. Local Recycler Relationships:
- Establish regular pickup schedule
- Negotiate better rates for consistent quality
- Consider joining forces with nearby businesses
## Five-Year Cost Projection (Including Recycling Revenue)
### 1. Plastic Bins
- Year 1: $1,930
- Year 2: $213
- Year 3: $213
- Year 4: $213
- Year 5: $213
Total 5-Year Cost: $2,782
### 2. Reinforced Cardboard
- Year 1: $755
- Year 2: $318.50 - $304 (recycling revenue) = $14.50
- Year 3: $14.50
- Year 4: $14.50
- Year 5: $14.50
Total 5-Year Cost: $813
Potential Cost Savings Over 5 Years: $1,969
## Break-Even Analysis
Initial Cost Difference: $1,175 ($1,930 - $755)
Annual Operating Cost Difference (including recycling): $198.50
Break-Even Point: 5.9 months
## Recommendations
1. Recycling Program Integration:
- Set up dedicated collection area
- Train staff on proper sorting
- Monitor market prices
- Build relationships with recyclers
2. System Choice Based on Volume:
- Low volume (under 1,000 sq ft): Start with cardboard
- Medium volume: Hybrid system
- High volume: Consider plastic for high-traffic items
3. Cost Monitoring:
- Track labor hours
- Monitor replacement rates
- Document recycling revenue
- Adjust system as needed
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