Using Network Design to Reduce Transportation Costs

Question

Wal-Mart designs its networks so that a DC supports several large retail stores. Explain how the company can use such a network to reduce transportation costs while replenishing inventories more frequently.

For a manufacturer that sells to many retailers, why does a quantity flexibility contract result in less information distortion than a buy-back contract?

Summary

This question belongs to supply chain management and discusses about network designs of Wal-Mart.

Word count: 146

 

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