Intermediately Positioned Warehouse

Posted in Operations and Supply Chain Terms, Total Reads: 293
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Definition: Intermediately Positioned Warehouse

Intermediately Positioned Warehouse is defined as a warehouse located between customers and manufacturing plants. It main objective is to provide the following advantages:

1. Increased customer service and

2. Reduced distribution cost

 

Warehouse Management

Warehouse is defined is the place of storage for any utility. It is from the warehouse that a utility is shipped to either an intermediary or the wholesaler. The advantages of warehousing are:

1. Supports JIT

2. Maintain a source of supply without interruptions

3. Logistic economies

 

Warehouse Strategy is another related concept that determines optimal warehousing by a manufacturer. It is dependent on location, economy and industrial synergies.

Intermediately Positioned Warehouse is one of such warehousing strategies. Intermediately positioned strategy places warehouses at a midpoint between the final customer and the producer.

 

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