Which of the following is an advantage of manufacturer storage with direct shipping?
A)Transportation costs are low because the average outbound distance to the end consumer is small and package carriers are used to shipping the product.
B)Supply chains save on the fixed cost of facilities,because the need for other warehousing space in the supply chain has been eliminated.
C)Response times tend to be small because the order has to be transmitted from the retailer to the manufacturer.
D)Order tracking is easy to implement because of the complete integration of information systems at both the retailer and the manufacturer.

Question

Quizplus · Accepted Answer

Manufacturer storage with direct shipping eliminates the need for intermediate warehousing, thereby saving on the fixed costs associated with such facilities. This is a key advantage as it reduces the overall storage footprint and associated costs within the supply chain.

Which of the Following Is an Advantage of Manufacturer Storage