Packaging. Purpose of Packaging Packaging Physical Protection Barrier Protection Containment /...
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Transcript of Packaging. Purpose of Packaging Packaging Physical Protection Barrier Protection Containment /...
Purpose of Packaging
Packaging
Physical Protection
Barrier Protection
Containment / Agglomeration
Information Transmission
Marketing
Security
Portion Control
Unitization
Combination of boxes, cartons, packages, pails,
etc., into one load or a PALLETISED LOADS
for ease of handling is known as unitization
Building Block ConceptThe building block concept is the whole transformation process from a individual product becoming a unit load through unitisation and then being loaded onto containers for shipping. Characteristics include:• It is a package of functionality defined to meet the business needs across an
organization.• It has published interfaces to access the functionality.• It may interoperate with other, inter-dependent, building blocks.• A good building block has the following characteristics:
– It considers implementation and usage, and evolves to exploit technology and standards.
– It may be assembled from other building blocks.– It may be a subassembly of other building blocks.– Ideally a building block is re-usable and replaceable, and well. specified.
• It may have multiple implementations but with different inter-dependent building blocks.
Revisiting: EOQ Formula
EOQ = √(2AP/S)A = demand per time period (example: annual demand or monthly demand)S = carrying cost/holding cost of 1 unit of stock for one time periodP = Order Cost
EOQ – How much is the optimal quantity to order?
Example 1A company consumes 800 units of a component every year. Price per unit = Rs 10. Ordering cost per order is Rs 200. Inventory carry costs are 20% of total inventory turnover. Determine the optimal order quantity that will minimize total inventory cost [HINT: To determine carrying costs, consider 20% of price per unit]A = 800S = 10 x 20/100 = 2P = 200
EOQ = √(2AP/S)
= √(2x800x200/2)
= √(320000/2)
= √160000 = 400 units optimal order quantity
Re-Order Level (ROL)
A minimum amount of an item which a company holds in stock, such that, when stock falls to this amount, the item must be reordered
Re-order Level = Lead Time Consumption + Safety StockWhere, Lead time consumption = lead time (in days) x Daily average Usage OR Consumption Rate
Example 2
ABC Ltd. is a retailer of footwear. It sells 500 units of one of a famous brand daily. Its supplier takes a week to deliver the order. ABC Ltd. has decided to hold a safety stock equivalent to average usage of 5 days. Calculate the reorder level.
Lead time = 7 daysDaily consumption or usage = 500Safety usage = 500 x 5 = 2500
ROL = 500 x 7 + 2500 = 3500 + 2500 = 6000
Example 3
Daily consumption of a raw material in the production process in 200 units. Lead time for delivery is 5 days. Company’s policy is to keep a safety stock to 3 days’ consumption. Calculate ROLLead time = 5Consumption of raw material = 200Safety stock = 200x 3 = 600ROL = 200 x 5 + 600 = 1600 units
Example 4
Daily consumption of material ‘z’ is 500 units. The supplier takes 4 days for delivering the materials after the order is placed, What should be ROL?
Lead time = 4Consumption of material = 500Safety stock = ?ROL = ?
Sources
• http://logpackaging.blogspot.in/2007/12/concept-of-logistical-packaging.html
• http://pubs.opengroup.org/architecture/togaf8-doc/arch/chap32.html#tag_33_02
• http://pnglc.com/roro-logistics-term-definition/