Products in the logistic system

Question 1

What is a product?

Answer 1

A product is a physical object that is sold and delivered to a costumer

Question 2

What happens when a company increases the number of products?

Answer 2

1. Tied up capital increases because we have more products in stock
2. Delivery service increases - its more unlikely that we are out of stock

Question 3

What is a product group?

Answer 3

Products that are similar in a distribution and manufacturing point of view.

Question 4

Många företag använder sig av semi-finished products or sub-system för att limit the product range. Varför är detta att föredra?

Answer 4

För att det leder till:
-Less administration
-Less complexity
-Mer effektiva
-Mindre tied up capital
-Lättare att göra en forecast
-Increase the delivery service.

Question 5

Why is it a good idea to increase the number of products/articles?

Answer 5

• Less complexity
• Less work effort
• Better delivery ability
• Lower capital tied up

Question 6

How can we reduce the number of articles?

Answer 6

• Standardization
• Purchase semi-finished products
• Integrate multiple features into one article