Final answer:
The hub in Domino's 'hub and spokes' organization is analogous to a distribution center, acting as the central storage point for ingredients before being sent to local stores, and reflects elements of a vendor-managed inventory system.
Step-by-step explanation:
In the Domino's "hub and spokes" organization described in the case, the hub is similar to a distribution center. This is because, in the context of Domino's, the hub is the central point where pizza ingredients are stored before being sent out to various 'spokes' or local stores. Like a distribution center, the hub ensures that supplies are managed efficiently and are readily available to be distributed to the stores as needed to fulfill customer orders. The hub streamlines the supply chain operations, providing a common inventory pool that reduces redundancy and saves costs, emulating the core functions of a vendor-managed inventory system to some degree. However, it remains essentially a distribution center providing direct support to the sales outlets.