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 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.