Homework Answers
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The possibe reasons for having multiple (six) distribution centers spread across US rather than 1 center in Iowa are:
i) Faster delivery to wholesalers and retailers for products having limited shelf life
ii) Faster response to product stockout (stock replenishment) at any specific retailer to minimize loss of sale
iii) To reduce the secondary cost of moving goods from the distribution center to the retailer. The demand is spread across the country and not restricted around the Iowa region. With just once center the secondary cost of moving goods would be much higher.
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