Question

Which transportation network design option has the elimination of intermediate warehouses and its simplicity of operation...

Which transportation network design option has the elimination of intermediate warehouses and its simplicity of operation and coordination as its major advantage?

A) Direct shipping network
B) Direct shipping with milk runs
C) All shipments via central DC
D) Shipping via DC using milk runs

Business   Operations-Management   
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Answer #1

Answer: A) Direct shipping network.

Direct shipping network is the one which eliminate the intermediate warehouses which are present between the source and destination points. This type of networks makes the process simpler, reduces the cost in the logistics and have good competitive advantage.

Other options given in the question such as Direct shipping with milk runs, all shipments via central DC, and shipments via DC using the milk runs are not the suitable options for the given question. Because it may use the intermediate sources.

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