Value density/ packaging density
Value density/ packaging density IBMS 203 Huang Yang 0842317
Value density is defined as the value of a good per pound of weight. For example, the value of a pound of diamond which is much higher than the value of a pound of bananas. That is the value density, two goods have same size and same weight, but they have different values. It is used to determine a product where should be stored and how can it shipped. It can show how important of transportation cost in the total product cost. Therefore, firm need trade-off between inventory and transportation cost. The products with high value density, firm can transport it in a expensive and faster way. Although it will increase cost of transportation, compare with the total cost of product, the transportation cost only small percentage of the total cost. For instance, Like an 1kg of diamond which worth 1 million Euro and a firm used the most expensive and fastest way to transportation. The transportation cost is 500 hundred, it is only 0.05 percentage of the diamond cost. So it is doesn’t matter and also the most expensive and fastest way mean the best service and safety. While for products with low value density, the firm will use slow and cheap way to transport the products. Because high transportation cost will add value to these products, and it will effect on the price of the products. Then, it will directly influence the profitability of products.
Packaging density is also called packing density which is the number of storage cells per unit area, space , length of storage media. Nowadays, with the development of technology. There are more and more packaging solutions are came up with. Compare with conventional packaging systems, we are able to use lightweight packaging solution that allows more cells shipped in a single box. Like using different arrangement mode to make sure maximize utility rate of space.
Technical textiles used which is widely in packaging, because of the
Value density is defined as the value of a good per pound of weight. For example, the value of a pound of diamond which is much higher than the value of a pound of bananas. That is the value density, two goods have same size and same weight, but they have different values. It is used to determine a product where should be stored and how can it shipped. It can show how important of transportation cost in the total product cost. Therefore, firm need trade-off between inventory and transportation cost. The products with high value density, firm can transport it in a expensive and faster way. Although it will increase cost of transportation, compare with the total cost of product, the transportation cost only small percentage of the total cost. For instance, Like an 1kg of diamond which worth 1 million Euro and a firm used the most expensive and fastest way to transportation. The transportation cost is 500 hundred, it is only 0.05 percentage of the diamond cost. So it is doesn’t matter and also the most expensive and fastest way mean the best service and safety. While for products with low value density, the firm will use slow and cheap way to transport the products. Because high transportation cost will add value to these products, and it will effect on the price of the products. Then, it will directly influence the profitability of products.
Packaging density is also called packing density which is the number of storage cells per unit area, space , length of storage media. Nowadays, with the development of technology. There are more and more packaging solutions are came up with. Compare with conventional packaging systems, we are able to use lightweight packaging solution that allows more cells shipped in a single box. Like using different arrangement mode to make sure maximize utility rate of space.
Technical textiles used which is widely in packaging, because of the