What function does a distribution center serve?

A distribution center primarily serves the function of managing the receipt, storage, and distribution of goods. This involves receiving products from suppliers or manufacturers, storing them until needed, and then efficiently distributing them to retailers or directly to customers. The goal of a distribution center is to streamline the supply chain process, ensuring that products are available when needed while minimizing costs associated with inventory management and transportation.

The operations within a distribution center are critical for maintaining the flow of goods within the supply chain. They handle a variety of tasks, such as order picking, packing, shipping, and inventory control. This maximizes efficiency and responsiveness to market demands.

Other options highlight functions that are not representative of a distribution center's core purpose. For example, producing goods for marketing pertains to manufacturing facilities, while handling returns and exchanges typically involves fulfillment centers rather than the broader operations of a distribution center. Conducting research on logistics efficiency is associated with academic or corporate research facilities, which is also outside the primary functions of a distribution center. Thus, option C clearly defines the essential role of a distribution center in the logistics chain.