This paper studies the costs involved in distributing items from a warehouse or depot to randomly scattered customers on a day-to-day basis. Two trade-offs are explored simultaneously. The first one arises because by accumulating large inventories at the depot it is possible to build more efficient distribution tours. This trade-off has already been explored for both distribution of goods (Burns et al., 1983) and passengers (Daganzo et al., 1977; Hendrickson, 1978). Another tradeoff, which involves the length of individual vehicle tours (Clarens and Hurdle, 1975), balances the inventory...