Figure 4.
The figure compares two warehousing models linking a manufacturer’s warehouse on the left to delivery locations on the right. In the disaggregated model, a single horizontal arrow labelled material flow spans the entire distance Y with efficiency less than one hundred percent. In the integrated model a zonal warehouse is placed between the manufacturer and delivery locations. Material flow first travels a distance X from the manufacturer to the zonal warehouse with efficiency equal to one hundred percent, then travels the remaining distance Y minus X to delivery points with efficiency less than one hundred percent. Both models show the manufacturer’s warehouse and delivery locations as large oval shapes and the zonal warehouse as a smaller dashed oval.Improved transport efficiency with zonal warehouses
Source: Authors’ own work