What is the primary objective of a distribution center (DC) in the supply chain?

The primary objective of a distribution center (DC) in the supply chain is to facilitate the efficient storage and distribution of goods. This role is crucial because a distribution center serves as a pivotal hub that connects manufacturers with retailers and customers. By streamlining the handling and management of inventory, a DC enables timely deliveries, optimizes transportation logistics, and reduces overall supply chain costs.

The focus on efficient storage means that a DC organizes products in a manner that allows for quick retrieval and dispatch, which helps maintain a steady flow of goods in the supply chain. This efficient management supports various logistics operations, such as order fulfillment and inventory control, ensuring that businesses can meet demand appropriately without overstocking or understocking products.

In contrast, other options, like maximizing product sales or managing supplier relationships, are important aspects of the broader supply chain but don't represent the core objective of a distribution center itself. Additionally, monitoring customer satisfaction is crucial for overall business success, but it is typically addressed downstream of distribution operations, rather than being the primary function of a DC.