Warehouse justification is based on providing a service or cost advantage from their location
• Must achieve freight consolidation with warehouse positioning
– Inventory storage to support customized orders
– Mixing facilities to support flow-through and cross-dock sorting
Key design questions to ask when developing a logistics network
• How many and what kinds of warehouses should a firm establish?
• Where should they be located?
• What services should they provide?
• What inventories should they stock?
• Which customers should they service?