A distribution center is designed to:

Question

Quizplus · Accepted Answer

A distribution center is primarily designed to speed up the flow of goods and avoid unnecessary storing. This is mainly achieved by distributing goods to their intended destinations as quickly as possible, which helps to minimize inventory turnover. A distribution center may also help to reduce transportation costs and improve the efficiency of supply chain operations, which ultimately leads to cost savings for the company. While some distribution centers may engage in buying low and selling high, this is not their primary function. Additionally, stockpiling goods for long periods is not always desirable, since this can tie up capital and increase the risk of damage or obsolescence.

A Distribution Center Is Designed To