Distribution centers:
A) Are designed to facilitate the flow of products through the channel.
B) Are the same as public warehouses.
C) Are not places where regrouping activities-such as bulk- breaking-are performed.
D) Increase storing costs.
E) All of the above.

Question

Quizplus · Accepted Answer

Distribution centers are specifically designed to facilitate the flow of products through the channel. They often include features such as cross-docking and efficient layout designs to optimize the movement of products. Public warehouses, on the other hand, typically offer more general storage services and may not be as specialized for distribution activities. Distribution centers may also perform regrouping activities, such as bulk-breaking, to better serve customer needs. While distribution centers do incur storage costs, their specialized design and optimized operations can ultimately help companies reduce overall logistics costs.

Distribution Centers