Analyzing the Product
In addition to the requirements customers place on products and their delivery, the qualities of the products themselves impose constraints on how they are packaged, transported, and stored. As shown in Figure 13.4, these requirements can be understood in terms of three key considerations: form, density, and risk.
Figure 13.4. Intrinsic Product Qualities
With regard to form, the major concern is whether a product is shipped in bulk or packaged form. Shipping and storing bulk materials is much cheaper than handling packages; for example, it costs about 77 cents per ton to ship sugar from Hawaii to the mainland in bulk, as ...
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