Final answer:
A warehouse location strategy focusing on proximity to suppliers is known as a Supply positioned strategy. It aims to reduce inbound transportation costs.
Step-by-step explanation:
According to the text, a warehouse location strategy that proposes locating a warehouse closest to the sources of supply is referred to as a Supply positioned strategy. This strategy focuses on positioning the warehouse as close as possible to raw materials or components to minimize the costs of inbound transportation. Notable examples of this approach are businesses that prioritize proximity to suppliers to reduce transportation and logistics costs. Amazon, as described in the provided text, uses a different strategy where they hold inventories in massive warehouses located in low-rent areas to take advantage of economies of scale, which is an example of a product positioned strategy where the focus is on being closer to consumers rather than suppliers.