'Bulk shipments go directly to subsidiary warehouses where they are stored until sold. Buffer stocks are maintained to minimize the possibility of stock-outs. This system works best where customer demand tends to be stable' This is which type of manufacturer-distributor option:
A) The direct system
B) The multi-country warehouse system
C) The transit system
D) The classical system

Question

Quizplus · Accepted Answer

The classical system involves storing bulk shipments in warehouses and maintaining buffer stocks to prevent stock-outs, which is suitable for stable customer demand.

'Bulk Shipments Go Directly to Subsidiary Warehouses Where They Are