A bill of distribution is the planned channels of inventory disbursement from one or more sources to field warehouses and ultimately to the customer. There may be one or more levels in the disbursement system. It is used to allocate inventory among different distribution centers based on demand, capacity, and costs. A bill of distribution is similar to a bill of materials, but for distribution planning instead of production planning. The other options are not correct, as they refer to different concepts in distribution management:

•A supply chain community is a network of organizations that collaborate to achieve common goals and objectives in the supply chain.

•Interplant demand is the demand for a product or component from one plant to another within the same company.

•Logistics data interchange (LDI) is the electronic exchange of information between logistics partners, such as suppliers, carriers, and customers. References:

•[CPIM Part 2 - Section A - Topic 4 - Distribution Planning]

•Distribution Channel Design

•APICS Flashcards