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Associated with this there are the discounts made when there is a late on fulfilling demand. Another aspect is the high transportation costs because all products are shipped to the central warehouse after production, and then send to each regional warehouse, but as some of these are near the plants warehouses many of these costs are useless. The need for the trucks to be full loaded is another bad aspect, since it takes more time to get to the next stage and could create stock out at some point, showing the weakness of a non flexible system. That could lead to a situation of Bullwhip effect. Related to this is the risk of this system long supply chain that can take 2 to 6 days for the products to arrive to the final customer...
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