Factory warehouse: Interfaces production with wholesalers
small number of large orders daily
advance info about order composition
=> focus on cost and order accuracy
(responsiveness depends heavily on production schedules)
Retail Distribution warehouse: Serves a number of captive retail units
advance info about order composition
carton and item picking from a forward area
more orders per shift than consolidation/shipping lanes
=> focus on cost, accuracy and fill rate
(responsiveness depends heavily on truck routing schedules)
Remark: If the retail units are not captive, then responsiveness becomes a crucial issue!