Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

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What is the process of consolidating several units into larger units called?

Aggregation

Unitization

The process of consolidating several units into larger units is known as unitization. Unitization specifically refers to the packaging of multiple individual items or smaller units into a single unit that is easier to handle, transport, and store. This approach is widely used in logistics because it enhances efficiency by minimizing the number of individual items that must be managed and moved.

By combining products into larger units, companies can optimize handling processes, reduce labor costs, and increase safety in transportation and storage. This practice is essential for streamlining operations in warehouses and distribution centers, making unitization a vital concept in logistics and supply chain management.

The concept of aggregation, while it may sound similar, refers more generally to forming a whole from related parts and does not specifically pertain to the packaging of goods for transportation. Standardization involves setting common specifications and uniformity across processes or products, and optimization focuses on improving efficiency and effectiveness in operations. However, neither of these processes specifically addresses the act of combining or consolidating units into larger entities, which is where unitization truly fits in.

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Standardization

Optimization

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