Distribution Strategies of Centralized and Decentralized Distribution Systems
For this assignment, you will analyze distribution strategies such as safety stocks, inventory levels, and reorder levels, as well as the transportation and holding costs of centralized and decentralized distribution systems.
journals' are private between you and the instructor. Approach these activities as an opportunity to reflect on and apply what you learn each week based on the assigned readings, discussions, and activities, and as an opportunity to share your knowledge and expertise based on your educational and professional experiences in the past. As a successful professional, you will need good reflective and writing skills. Journal activities offer you the opportunity to further develop these skills. The journal entries in this course are graded separately.
Guidelines for Submission: Submit journal assignments as Microsoft Word documents with double spacing, 12-point Times New Roman font, and one-inch margins
Journal: Distribution Systems
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Distribution Systems
A distribution system refers to the chain of transmission of a product from the manufacturer, retailer or distributor, all the way to the final consumer of the good. The safety level of stock refers to the level of inventory that a distribution company sets aside to cushion itself from a shortage caused by unforeseen events, or otherwise, which would be hazardous to the company. It acts as a buffer in case the company’s stock runs out for whatever reason. Such unforeseen events may include a delay in supplies or inaccurate forecasts of stock run-out.
For a distribution company, strategies for inventory management is key. Ideally, the inventory level i.e. the level of stock held by the company should be kept to a minimum. Once the level of stock reaches a certain level, known as the reorder level, the company has to make an order...