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Eleven stores in the U.S. are replenished by wholesalers and by manufacturers (DSDs). 7-Eleven in the U.S. is attempting to duplicate the supply chainstructure that has succeeded in Japan by introducing distribution centers (DCs). Can a DC achieve economy in inbound (suppliers-to-DC) and outbound (DC-to-stores)transportation as in Japan? Is it feasible to design a new 7-Eleven's own (verticallyintegrated) distribution system in the U.S. and what are issues.

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