Choose a major manufacturer and a major retailer and describe two types of warehousing each might use and why they use it
What will be an ideal response?
Answer: Answers will vary depending on examples chosen. A major manufacturer might ship goods to a cross-docking facility that will enable them to parcel out their production to several smaller locations. They might also use break-bulk warehousing for the same purpose. Both techniques would lower costs by negating the need for long routes served by trucks with very limited variety. A retailer might use cross-docking to take large shipments from many suppliers and send a small portion to each of several retail locations. A retailer might also use a hub and spoke system as part of their distribution chain. Finally, retailers can use assortment warehousing or spot stock warehousing to serve as a buffer for periods of high demand so they can fill unexpectedly large orders.