TABLE OF CONTENTS
Section Page
Title page and declaration ................................................................... 1
Table of contents ....................................................................................... 2
Question 1 – Warehousing and distribution centres …................ 3
Question 2 – Inventory overstocking risks ......................................... 6
Question 3 – Customer service in retail.............................................. 9
Reference list................................................................................................. 12
1
, Question 1
Explain why firms need to have warehouses and distribution centres and the
problems that can arise in warehousing.
Warehousing and distribution centres (DCs) are essential components of modern
supply chains. According to the study guide (TRL2604, Unit 2), warehousing refers to
any system that stores products at any point in the logistics system, from raw materials
to finished goods. A distribution centre is a specific type of warehouse that sorts and
routes goods from various manufacturers to retailers (De Villiers et al., 2018, cited in
TRL2604, p. 17–18). This answer explains why firms need these facilities and discusses
common warehousing problems.
2
Section Page
Title page and declaration ................................................................... 1
Table of contents ....................................................................................... 2
Question 1 – Warehousing and distribution centres …................ 3
Question 2 – Inventory overstocking risks ......................................... 6
Question 3 – Customer service in retail.............................................. 9
Reference list................................................................................................. 12
1
, Question 1
Explain why firms need to have warehouses and distribution centres and the
problems that can arise in warehousing.
Warehousing and distribution centres (DCs) are essential components of modern
supply chains. According to the study guide (TRL2604, Unit 2), warehousing refers to
any system that stores products at any point in the logistics system, from raw materials
to finished goods. A distribution centre is a specific type of warehouse that sorts and
routes goods from various manufacturers to retailers (De Villiers et al., 2018, cited in
TRL2604, p. 17–18). This answer explains why firms need these facilities and discusses
common warehousing problems.
2