In a supply chain network, the distribution center (DC) provides which of the following functions for the factory?

Question

Quizplus · Accepted Answer

The distribution center serves as a source of supply for the factory, providing raw materials or components to be used in production. Option A, obsolete inventory location, is not a function of the distribution center. Option B, substitute producer, refers to a backup supplier, which is usually not the role of a distribution center in a supply chain network. Option C, buffer from customer demand, refers to the role of inventory in creating a buffer between the customer and the upstream partners in the supply chain, rather than the role played by a distribution center for the factory.

In a Supply Chain Network, the Distribution Center (DC) Provides