A new distribution warehouse is added to an existing supply chain network. Which of the following factors primarily is responsible for the resulting…

Purpose of Distribution Warehouses: They are meant to store products closer to customers, thus

improving delivery times and service levels.

Impact of New Warehouse: Adding a new warehouse reduces the distance products need to travel to

reach customers.

Primary Factor: Reduced travel time from the distribution warehouse to the customer leads to faster

deliveries.

Supporting Factors: While new material handling equipment and increased safety stock (Options A

and B) can contribute to efficiency, the primary reason for reduced lead times is the proximity of the

new warehouse to the customer (Option C). Reference: Distribution Network Design, Logistics

Management textbooks.