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The objective of this paper is to calculate the number of bags needed to successfully supply a large package delivery operation. These bags are used to consolidate many small packages into an easier to transport large container -- thus decreasing the handling cost associated with them. Presently, disposable plastic bags are being used. The hypothesis is that permanent bags may make economical sense if the net present value of this modification is positive. The major determinant in the financial success of this proposition is the number of bags needed to feed the operation. Through monte carlo simulation techniques, we were able to accurately model the inherent dynamic uncertainty in this calculation. Thereby enabling the financial calculation to be performed.

Derivation of the initial stock of bags - a monte-carlo approach