Home > Transportation > Value to weight ratio

Value to weight ratio

This ratio determines parts of the distribution network. It is possible to have a centralized system (in case there is a low value to weight) and a decentralized system (in case there is a low value to weight).

The furniture is a product with a value to volume ratio terribly low and transporting its really expensive. Then suppliers use to install close to their customers. If you manage to increase the value to volume ratio you will be able to design centralized warehousing.

 

On this product there are full of empty spaces, so it was really expensive to transport (this is not square):

 

But the new one is different and it is possible to disassemble the hypopotamus. So transportation costs reduce a lot.

 

Categories: Transportation
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