Asked by Sumayyah Bachooa on Jun 04, 2024
Verified
Which of the following is an advantage of distributor storage with carrier delivery?
A) Inventory cost is higher than with manufacturer storage.
B) Product variety is lower than with manufacturer storage.
C) Order visibility for the customer is easier than with manufacturer storage.
D) Higher cost to provide the same level of product availability as manufacturer storage.
Carrier Delivery
The service of transporting goods to a designated location via a shipping or freight carrier.
Manufacturer Storage
The space or facility designated by manufacturers for storing raw materials, work-in-progress, or finished goods before they are distributed.
- Understand the principal elements that affect pricing within networks of supply chains, such as costs associated with transportation and inventory.
- Identify the significance of customer experience within the supply chain, focusing on the availability of products and transparency of orders.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
C
Explanation :
With distributor storage and carrier delivery, customers can easily track their shipments and be informed of the estimated delivery date. This improves order visibility and customer satisfaction. Additionally, the distributor may have a wider range of product offerings than the manufacturer, providing more variety for customers. However, this method may result in higher inventory costs and potentially higher costs to achieve the same level of product availability as with manufacturer storage.
Learning Objectives
- Understand the principal elements that affect pricing within networks of supply chains, such as costs associated with transportation and inventory.
- Identify the significance of customer experience within the supply chain, focusing on the availability of products and transparency of orders.
Related questions
The Number of Different Products/configurations That a Customer Desires from ...
The Probability of Having a Product in Stock When a ...
Total Logistics Costs for a Supply Chain Network Are a ...
A Retailer Delivers Products All the Way to the Customer's ...
The Ease with Which the Customer Can Place and Receive ...