Reusable packaging in the air conditioning industry: A case study

Although the sustainability aspect is seen as a given, it also includes economic and social dimensions. Although reusable packaging contributes to economic and sustainability, there are few studies in the existing literature to determine the demand for reusable packaging, its financial benefits (e.g. Skerlic ve Muha, 2020) and growth situations (e.g. Asim, 2022). This has been the motivation that complements students in this field. More specifically, using a case study method, this study will estimate the demand for reusable packaging, equivalent cost, and cost and profitability analysis. This study used a case study method. A case study is a detailed examination of a topic (Punch, 2011). The universe of the research is limited to Daikin, a leading Japanese company in the world's air conditioning sector. The company operates a factory in Türkiye and the data was collected from this factory. This research examined the economic feasibility of transporting four different materials in reusable packaging using quantitative methods. Four different air conditioner outdoor unit covers determined as the most suitable material were examined and it was seen that they could be carried in a package with common dimensions. First, a common reusable packaging size and type were determined for these parts. Then, the optimum number of packages for the future periods was determined using the Exponential Smoothing Model, which is a quantitative demand estimation method, and the investment cost was calculated based on the determined number of packages. After calculating the investment cost for reusable and disposable packages, the balance point and payback period of the investment were determined. Finally, profitability was calculated for the next four years. After the demand forecast for reusable packaging material was made with exponential smoothing, the equilibrium point usage amount of the investment was found to be 15,041 units. The investment starts to bring profit to the company from the ninth month of reusable packaging use and a profit of approximately €265,000 was calculated in 4 years. The profitability of the investment was calculated as 32.5% in the first year, 156.75% in the second year, 256.66% in the third year and 356.91% in the fourth year. The analysis shows that using reusable packaging provides significant financial gains for businesses in the long term. In addition, positive effects on environmental sustainability have been identified in terms of factors such as reducing carbon footprint and waste management. The analysis revealed that using recycled packaging saves approximately 265,000 Euro in four years. This study has several implications for managers and policy makers. In order to increase the use of recyclable packaging, businesses should also be made aware of the cost advantages and environmental benefits of recyclable packaging systems. Other implications include developing public policies to encourage the use of recyclable packaging, creating financial support programs to strengthen legal regulations for sustainable packaging, and making processes more efficient by implementing smart monitoring systems and recycling technologies in packaging processes. Keywords: Sustainability, Reusable Packaging, Cost