ABSTRACT
On one side of the supply chain link are the distribution networks. A single level of DCs may be able to provide adequate service to the customer. In more complex distribution, a network hierarchy of centers could be utilized. An example of this is the auto parts stores. The retail outlet is the final distributor to the customer. Higher sales volume parts are stored directly at the retail outlet. The regional DC holds those parts that are expected to have some sales or may be more unpredictable in demand. These parts are available to the retail outlet in 24 hours. To further back up the regional warehouse, a national warehouse may consolidate requirements and provide unique parts that experience unpredictable demand. This distribution network may look like Figure 11.1.
