Chapter 3
The Logistics/Supply Chain Product

Classification Products;

1.      Consumer product; directed to ultimate consumer

2.           Industrial products; directed to individuals or organizations

Product Characteristics;

1.       Weight-Bulk ratio

2.       Value-Weight ratio

3.       Substitutability

4.       Risk Characteristics

Product Packaging;

·         Facilitate storage and handling

·         Promote better utilization of transport equipment

·         Provide product protection

·         Promote the sale of the products

·         Change the product density

·         Facilitate the use of the products

·         Provide reuse value for the consumer

Product pricing;

·         Geographic Pricing Methods

·         F.O.B. Pricing

·         Zone Pricing

·         Single, or Uniform, Pricing

·         Freight Equalization Pricing

·         Basing Point Pricing

Quantity discount: Economic theory teaches that the more goods that are handled during a single transaction, the lower the costs on a per-unit basis.