Current technical advances enable internet of things (IoT) technology. Key features of IoT are 'smart things', which have computational capabilities. In this paper, we focus on waste management using dynamic allocation of collection and transfer points to transport waste to processing facilities. Waste management involves a variety of tasks from collection of waste to transport and disposal to appropriate locations. The proposed waste management system contributes to smart city (SC) applications with impact in the dynamic allocation management of mobile depots. We propose certain models, which replace traditional way of tipping waste into larger containers by swapping full waste bins with empty ones. We also propose the concept of mobile depots as intermediate collection and transfer points. Quantitative and qualitative metrics to assess the efficiency of the proposed models are used. The models demonstrate their efficiency and potential adoption by SCs.