What is defined as the strategic layout of warehouses and transportation routes?

The strategic layout of warehouses and transportation routes is best defined by distribution network design. This concept involves the planning and structuring of how products are stored, handled, and transported from suppliers to customers and includes considerations such as the location of warehouses, the selection of transportation modes, and the optimization of delivery routes. The goal of distribution network design is to effectively meet customer demands while minimizing costs and improving service levels.

This process requires a thorough understanding of various factors like market demands, supply chain capabilities, and the geographic distribution of customers and suppliers. By strategically designing the network, companies can enhance their operational efficiency, reduce delivery times, and better manage inventory.