Cyrus Production has six production plants, each located within a 45 mile circle

Question

Cyrus Production has six production plants, each located within a 45 mile circle. Cyrus specializes in small volume custom production of automobile parts. Each plant's daily output is typically small, and in most cases, the outputs do not require any priority shipping arrangements. Shipping each plant's daily output by motor carrier is expensive because the items are shippd by I. rais. If the ouipuis were accumulaied for a 1. shipnni., it may take as long as two weeks before a shipment can be made. Instead, the shipments are accumulated at Cyrus' central warehouse into daily TL shipments. This describes which value-added role of warehousing in a logistics system? a. Smoothing operation b. Contingencies O c. Decoupling O d. Transportation consolidation

Explanation / Answer

Transportaion consolidation. In this process small shipment pulltogether to a common place.

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