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History for Distribution Center (history as of 04/01/2008 07:02:55)

for a set of products is a warehouse or other specialized building, often with air conditioning, which is stocked with products to be re-distributed to retailers or wholesalers. Distribution centers are the foundation of a retailing network. They allow a retail location to stock vast numbers of products without incurring an explosion in transportation costs. The way a typical distribution network operates is to have centers setup throughout a commercial market. Each center will then service a number of stores. Large distributions centers for large companies may service 50-125 stores. Suppliers will ship truckloads of products to the distribution center. The distribution center will then store the product until needed by the retail location and ship the proper quantity.

  

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