In a supply chain network, the primary function of a **distribution center (DC)** for the factory is:
**C. Buffer from customer demand**
### Explanation:
A **distribution center (DC)** acts as an intermediary between the factory and customers. Its key functions include:
- **Buffering customer demand**: The DC holds inventory to absorb fluctuations in customer demand, ensuring that the factory can operate efficiently without being directly affected by short-term demand changes.
- **Improving delivery times**: By storing products closer to customers, the DC reduces lead times and enhances service levels.
- **Consolidating shipments**: The DC allows for more efficient transportation and distribution of goods.
A distribution center (DC) provides a buffer from a customer demand for the factory. This means that the DC can store finished goods until they are needed by customers
How can a DC be source of supply for Manufacturer? This is a Buffer
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