a distribution anager at a company that has customers in 50 states considers that storing goods in every state will make them quickly available to all customers. what other major factor should affect the decision on the number of warehouses?
One major factor that should affect the decision on the number of warehouses is the cost involved in operating and maintaining multiple warehouses. Having a warehouse in every state may increase convenience for customers, but it can also significantly increase the company's operational costs such as rent, utilities, staffing, transportation, and inventory management. Therefore, the distribution manager should weigh the benefits of quick access to customers against the costs of maintaining multiple warehouses to determine the optimal number of warehouses for the company's operations. Other factors that should be considered include transportation costs, inventory levels, demand forecast accuracy, market trends, and the company's overall supply chain strategy.
