Unitization

Posted in Operations and Supply Chain Terms, Total Reads: 3279
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Definition: Unitization

It is the process of consolidation of several units into single unit. It is made of a number of items or a  bulky material and is constrained to lifted and shifted because it is too bulky to be moved manually. Material handling cost decreases as the size of the unit increases.

Using a carton would be more economical than lifting items individually and combining several cartons into a unit load would be even more economical.

Example:

At the time of transferring the purchased components in the car we do not keep them individually we place them in a bag.  Similarly unit loads are used in the industry .Pallet is an example of a unit load device usually has a dimension of 48”X40”X4” designed so that several packages are placed on it. Several such packages form a unit cube.


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