The case deals with the problem of deciding the locations of warehouses for the distribution of chemical fertilizers in Gujarat for a large company having 500,000 tonnes capacity. Specifically, the major questions are how many stocks points to use, in what broad geographical areas, exact locations for the depots, inventory levels to be maintained at each depot to avoid stockouts, and the operating costs of running the operation. Comparative data on direct distribution versus distribution through depots is given. The case also gives sufficient data on consumption patterns, growth rates, distances and costs of transportation to evaluate and select the most appropriate method of physical distribution.