Cross-Dock Assortment Arrangements: or Plant A Customer A

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FIGURE

13-2 Cross-Dock
Assortment
arrangements
or
Plant A
Customer A

Company B
Distribution Customer B
or
warehouse
Plant B

Customer C
Company C
or
Plant C

Mixing

Customer W

u Plant B

Plant C
\ mixing
point

Product D
A
Customer Y

B C

Customer Z

Assembly

I Vendor A 1,
Lead supplier -Assembly plant
warehouse

m Vendor C

Stockpiling. The direct economic benefit of stockpiling is to accommodate sea-


sonal production or demand. For example, lawn furniture and toys are typically pro-
duced year-round but are sold only during a very short marketing period. In contrast,
agricultural products are harvested at specific times, with subsequent consumption oc-
curring throughout the year. Both situations require inventory stockpiling to support
marketing efforts. Stockpiling provides an inventory buffer, which allows production
efficiencies within the constraints imposed by material sources and consumers.

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