Shipment size moves several costs at once
A large shipment may reduce freight and handling cost per unit, while smaller shipments can preserve cash and reduce storage exposure. The better option depends on demand confidence and the cost of delay or excess.
Compare both scenarios completely
- Freight, preparation, appointment, and handling cost per shipment and per unit.
- Average inventory held and expected storage duration.
- Cash paid before sell-through and the timing of later settlements.
- Stockout risk if a later shipment is delayed.
- Excess risk if demand slows after a large shipment arrives.
Include operational capacity
More frequent shipments create more labels, bookings, reconciliations, and opportunities for execution error. Add the team's or partner's processing cost instead of treating shipment frequency as free flexibility.
Use a hybrid when uncertainty is high
Consider producing an efficient quantity while releasing it in controlled stages from an upstream location. The holding and transfer costs must be included, but the structure can preserve options while demand becomes clearer.