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Consider a company that has a distribution center (DC) that sends shipments to customers using either less-than-truckload transport or transportation consolidation. Two important classes of
Consider a company that has a distribution center (DC) that sends shipments to customers using either less-than-truckload transport or transportation consolidation. Two important classes of customers are automotive suppliers and aerospace suppliers. The automotive suppliers are located on average 150 miles from the DC, whereas the aerospace suppliers are located on average 800 miles from the DC. For which set of customers will the DC be able to establish a longer maximum holding time (i.e., maximum time between dispatch) if it uses transportation consolidation? Note, assume both types of customers have identical lead time requirements. Question 5 options: a) Aerospace suppliers. b) Automotive suppliers. c) Maximum holding times will be the same for both suppliers
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