Measures the percentage of packaging material used efficiently in the production process.
What it Measures ?
% of packaging volume effectively used.
Relevant StakeHolders
Packaging, Warehouse Ops
Why it Matters ?
Optimizes packaging costs and improves space efficiency.
In-depth Use Case / Real-world Example
A company manufacturing food products calculates Packaging Utilization Rate by measuring how much of the packaging material (boxes, plastic, etc.) is used effectively. For example, if 80% of the packaging material is used efficiently while 20% is wasted, the packaging utilization rate is 80%. Optimizing this rate reduces costs and minimizes waste.
Sample Formula
(Effective Packaging Volume / Total Packaging Volume) * 100