Compared to a warehouse, a DISTRIBUTION CENTER is:
A) designed to provide more efficient use of storage space.
B) concerned with eliminating the need for bulk-breaking.
C) designed to eliminate all storage.
D) set up to speed the flow of products toward the consumer.
E) a storage facility used by several intermediaries-to share costs.

Question

Quizplus · Accepted Answer

A distribution center is designed to speed up the flow of products towards the consumer by providing efficient order fulfillment, sorting, and transportation capabilities. Unlike a warehouse which is primarily a storage facility, a distribution center focuses on getting products quickly and accurately to their final destination, whether it's a retailer, a wholesaler, or an end customer. Choice A is not correct because efficient use of storage space is a consideration for both warehouses and distribution centers. Choice B is incorrect because bulk-breaking (i.e. breaking down large shipments into smaller quantities for resale) may still be necessary in a distribution center depending on the needs of its customers. Choice C is not true because storage is an essential function of a distribution center. Choice E is incorrect because while multiple intermediaries may use a distribution center, these intermediaries are usually part of a single supply chain rather than sharing costs.

Compared to a Warehouse, a DISTRIBUTION CENTER Is