Electronic Parts/Guidelines - infoHouse

the use of material handling equipment (ea., carts), and/or
well controlled or minimal handling, shipping, and storing environments (e.g., close or nearby
vendors).
Remable Packaging: One of the most cost effective and environmentally-sound material reduction
tecnniques is reuse of materials. Because of its significance, a separate and expanded section is
included In this guide.
6.3 Reusable Packaging
8.3.1 Elements of Cost
The following are some of the cost elements in packaging material and container programs. Although
it !s not an all-inclusive list, it does list some of the more common and significant items that should be
cons!dered.
MaterSals: The material costs generally are the costs to purchase the container or packaging item.
The purchase or material costs of a reusable item should be compared to the cost of the disposable
Item. This comparison should be made on a total program life basis. The total number of disposable
items required, times tho disposable Item's material cost, should be compared to the total number of
reusable items required, times the material cost of the reusable Item.
Example:
(# dlsposable items) x (disposable item purchase cost)
versus
(# reusable items) x (reusable item purchase cost)
in addition to the purchase costs, any material cost required to maintain or repair reusable items
should also be estimated.
Reuse Me: Although not an element of cost, the reuse life is used to help define the number of reus-
able items needed to support a program. Reuse life should be considered a major cost lever or item
that greatly influences material costs of reusable items. As reuse life increases, fewer reusable Items
are needed. which then lowers the material costs.
Plpellne: Like reuse life, inventory pipeline effects material costs. The inventory pipeline defines the
number of reusable items needed at any given time. Inventory pipeline should also be considered a
major cost lever. Reusable programs are often most cost effective when pipelines are small.
Return: Return costs include the handling and shipping costs to return an item from the end of one
use. back to the starting point of the next use. This may include both transportation and labor costs
required to return an item.
SMpplog: In addition to return shipping costs. the cost to ship packaged items in reusable containers
.and disposable containers should be estimated. in many situations, container characteristics such as
size and mass wlil effect transportation costs.
Le& Labor costs not included in other cost elements should be uniquely identifled and estimated.
Labor costs may Include
Administration: Thls may include the labor to manage, control, and analyze requirements of an on-
wing reusable program. Thls should be compared to administrative costs (if any) for a disposable
program.
MaterIaI ReductIan and Reusable Packaging Guldellnes 41