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The act of delivering goods and services from producers to customers.

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Distribution Centers is a space designed to receive and dispatch many goods and with the function of storing them.

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Holds goods for moderate to long periods to balance supply and demand for producers and purchasers .

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Direct Shipment Distribution Strategies 

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Direct Shipment Distribution Strategies 

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-Customer demand and location
-Service level
-Costs => transportation & inventory costs
-Demand Variability

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Types:
-Corporate
-Administered
-Contractual

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Physical distribution system contains these elements:

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Physical distribution system contains these elements:

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-Customer service
-Transportation
-Inventory control
-Protective packaging and materiales hadling
-Order processing
-Warehousing

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-It guarantees the continuous supply of goods and means of production to provide an uninterrupted services.
-Goal of the strategy is to minimize operating costs to meet shipping requirements.