Improved Stock Location in the Physical Distribution Channel
Visualise a company with 10,000 product items and several warehousing levels in its physical distribution channel. If this company is typical, it is not likely to stock all 10, 000 items at all warehouses. But which items should be stocked at which warehouses? Fortunately, there are at least some generalised concepts for dealing with this question. Unfortunately, concepts alone do not make a workable methodology. This article is directed toward extending these generalised concepts into an easy, efficient procedure that a firm can use to provide optimum or near optimum solutions to its stock location problems.
KeywordsDistribution Channel Inventory Cost Physical Distribution Transportation Rate Local Warehouse
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