Equivalent logistics volume (ELV) is a popular tool used in supply chain management. It is used to measure and evaluate material flow in the same area. ELV can also measure the efficiency of production systems. It is a method for measuring the relative weight value of a material as well as a measure of safety when dealing with hazardous materials.
The ELV tool was developed by professor Jean-Phillipe Belin at the University of Le Havre in France. He identified a series of production lines which are in line with the principles of the ELV concept. It is based on the idea of establishing a process flow with each unit of input being assigned to an equivalent unit of output. The equivalent logistic volume is calculated by multiplying the actual amount of input material by the equivalent output material.
ELV is used to compare the relative weight of different products within the same industry. It also helps to determine how efficiently one product is distributed compared to another. This type of measurement is highly useful in the pharma, beverage and food industries. It helps to identify the best options for distributing and moving materials through the supply chain. This allows manufacturers to reduce the cost and effort associated with distributing their products.
ELV is a relatively simple tool that provides an easy way for manufacturers to track and analyze their supply chains. It helps to identify potential areas of waste and problems with the current system. Additionally, by evaluating the relative weights of different material flows, companies can make informed decisions about the best distribution. ELV is not just a method for measuring the relative weight of materials, but also for measuring the safety and speed of production processes.
In conclusion, equivalent logistics volume is a powerful tool used in supply chain management and has many advantages. It can be used to measure the efficiency of production systems and track the safety of hazardous materials. Additionally, it can provide manufacturers with valuable insights into the best production and distribution options. Companies can reduce the cost and effort associated with distribution, and make informed decisions with ELV.
