Asked by Shaniqua Esdaille on Jun 17, 2024

verifed

Verified

Which transportation network design option establishes an extra layer between suppliers and retailers to store inventory and to serve as a transfer location?

A) Direct shipping network
B) Direct shipping with milk runs
C) All shipments via central DC
D) Direct shipping

Central DC

A principal distribution center in a logistics network where products are received from suppliers and then distributed to various retail or end points.

Suppliers

Entities that provide goods and services needed by a company to produce its own products.

Retailers

Businesses that sell goods directly to consumers, acting as the final link in the supply chain between manufacturers and the end customer.

  • Evaluate the choices in transportation network configuration and their implications for supply chain effectiveness.
verifed

Verified Answer

JO
Justin OrtegaJun 22, 2024
Final Answer :
C
Explanation :
The option of shipping all products via a central distribution center would establish an extra layer between suppliers and retailers, as the products would be stored in the central DC before being distributed to the retail locations. This would provide an opportunity for inventory to be maintained at the DC and allow for more efficient transfer of products to the retailers. The other options do not establish an extra layer between suppliers and retailers, as they involve direct shipping from suppliers to retailers without any intermediary storage or transfer locations.