In a supply chain network, the distribution center (DC) provides which of the following functions for the factory?
In a supply chain network, the distribution center (DC) provides which of the following functions for the factory?
In a supply chain network, the distribution center (DC) acts as a buffer from customer demand for the factory. This means that the DC stores finished goods produced by the factory until they are needed by customers, thereby reducing the direct pressure of immediate consumer demands on the factory. The DC helps in managing inventory, facilitating efficient distribution, and improving service levels.
How can a DC be source of supply for Manufacturer? This is a Buffer
A distribution center (DC) provides a buffer from a customer demand for the factory. This means that the DC can store finished goods until they are needed by customers
The correct answer is C. Buffer from customer demand.
Agree - DC gives risk pooling to SC and allows to manage economy of scale during replenishment
C is the correct answer