ABSTRACT
In a supply chain, raw materials and components are moved from suppliers to manufacturers and finished products are moved from manufacturers to consumers. Distribution is an important factor in determining the profitability of a supply chain. A supply chain needs to have a sufficient number of facilities to meet customer demand. Inventory is held at each facility in a supply chain. In a global supply chain, a company may assign different strategic roles for different facilities. Facility costs are higher, but transportation costs are lower because economies of scale can be achieved for inbound transportation to the warehouses. Inventory costs can be kept low and the transportation costs are low. Transportation enables the smooth operation of a distribution network. Companies may use a combination of different transportation modes, commonly referred to as intermodal transportation. An emerging mode of transportation is electronic delivery of digital products.
