Which distribution network design is similar to pure drop-shipping,except that pieces of the order coming from different locations are combined so that the customer gets a single delivery?
A)Manufacturer storage with direct shipping
B)Manufacturer storage with direct shipping and in-transit merge
C)Distributor storage with package carrier delivery
D)Distributor storage with manufacturer pickup

Question

Quizplus · Accepted Answer

The distribution network design that combines pieces of the order coming from different locations so that the customer gets a single delivery is called "in-transit merge." This is similar to pure drop-shipping since the items are not stored in a warehouse, but are shipped directly from the manufacturer or supplier to the customer. However, the in-transit merge design adds the extra step of merging products from different locations into a single shipment to save on delivery costs and reduce transit times. This is why the correct answer is choice B: Manufacturer storage with direct shipping and in-transit merge.

Which Distribution Network Design Is Similar to Pure Drop-Shipping,except That