Unit Load

1. What is a unit load?

• "A number of individual packages bonded, palletized or strapped together to form a single unit for more efficient handling by mechanical equipment. [http://www.geodiswilson.com/en/Global_tools/Logistics_Dictionary/U/]

• "Packages loaded on a pallet in a crate or any other way that enables them to be handled at one time as a unit." [http://www.apl.com/equipment/html/equipment_glossary.html]

• "A unit load combines individual items or items in shipping containers into a single "unit" that can be moved easily with pallet jack or forklift truck. A unit load packs tightly into warehouse racks, intermodal containers, trucks, and boxcars, yet can be easily broken apart at a distribution point, usually a distribution center, wholesaler, retail store, etc." [http://en.wikipedia.org/wiki/Unit_load]

[http://www.andrews-automation.com/pallet-elevators/]

The bullwhip effect

1. Definition:

"It is a phenomenon observed in forecast driven supply chain and describes that the variation in demand increases up the supply chain from consumer to supplier." [http://www.scribd.com/doc/17392509/Bullwhip-Effect]

-> the more steps that are in between of the consumer and the supplier, the bigger the variation gets

[http://www.scribd.com/doc/17392509/Bullwhip-Effect]

[http://maja.uni-mb.si/files/apem/APEM3-1_045-055.pdf]

Therefore it can be said that the bullwhip effect is an inefficiency of the supply chain and small changes in customer demand can result in large swings in orders placed upstream.

Hub-and-Spoke-System

In transportation one usually distinguishes between direct transportation and Hub-and-Spoke-Systems.

Direct transportation is a point-to-point connection, which means transports that are going into one direction.

The basic characteristic of Hub-and-Spoke-Systems is its star-shaped organization.
The hub is the central node from where the transportation takes place to all the end nodes.

Task (26.02.2010): Is there a relationship between price, value and cost?

1. Definitions

Price:

• "The amount as of money or goods, asked for or given in exchange for something else."

http://www.thefreedictionary.com/Price

• "The price is your financial reward for providing the product or service"

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790695

• Price depends on the market

• "Price is defined as what we pay for something. We write a check, use cash or a credit card, and our account is debited."

http://ezinearticles.com/?The-Price,-Cost-Value-Relationship&id=321066

Review of first class (26.02.2010)

1. Clarification of organizational questions & introduction of course members

2. World Trade and GDP

Between 1950 and 2010 the GDP has multiplied by 10, the World Trade even by 80.

What is the reason for this? (Brainstorming in class)

• Open markets

-> globalization, no borders

• Unit Loads have been created

-> Standardization of units that are being used to cut costs (f. ex. faster up- & unloading)
-> ex. europallets, containers, boxes