Product movement:
Movement of any type of product for e.g. Raw materials, work in progress or Finished Goods is to be done only when it ads any kind of value to the organization. Raw material should be moved from one place to another only when they are needed for the reason of production or if they are needed as buffer stock. Like that only Finished Goods should be moved only when they are required at a supply center. Unrequited movement of any kind of product should be neglected. Movements should act value to the company.
Transportation involves the use of temporal resource because product is inaccessible during the transportation process. Such product, commonly referred to as in- transit inventory, is becoming a significant consideration as a variety of supply chain strategy such as JIT reduce manufacturing and distribution centers inventories and so on.
The major objective of transportation is to move product from an origin location to a prescribed destination while minimizing temporal, financial and environmental resource costs.
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