Distributor storage with carrier delivery

Question 1

What is distributor storage with carrier delivery?

Answer 1

inventory is held by distributors in intermediate warehouses, and package carriers are used to transport products from the intermediate location to the final customer.

Question 2

Inventories

Answer 2

Requires a higher level of inventory due to loss of aggregation. It makes sense for products with higher demand

Question 3

Transportation

Answer 3

are somewhat lower for distribution storage compared to manufacturer storage because an economic mode of transport can be used for inbound shipments to the warehouse, which is closer to the customer. allows outbound shipments to be bundled into one further reducing transportation costs