Which of the following would be a disadvantage of manufacturer storage with direct shipping?
A)The ability to reduce cost of inventory by centralizing inventories at the manufacturer.
B)The manufacturer has to postpone customization until after the customer order has been placed.
C)Supply chains have to eliminate other warehousing space to save on the fixed cost of facilities.
D)Response times tend to be large because the order has to be transmitted from the retailer to the manufacturer and shipping distances are on average longer from the manufacturer's centralized site.

Question

Quizplus · Accepted Answer

With manufacturer storage and direct shipping, the retailer has to transmit the order to the manufacturer, which can lead to longer response times. Shipping distances are also typically longer from the manufacturer's centralized location, which can further slow down the process. The other options listed are advantages of this system, rather than disadvantages.

Which of the Following Would Be a Disadvantage of Manufacturer