A discount house can store and transport merchandise that is purchased directly from the producer, thus eliminating the need for a wholesaler. This is an example of vertical channel integration.

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Vertical channel integration refers to the process of combining different stages of the distribution chain, such as manufacturers, wholesalers, and retailers, under a single ownership. The scenario described in the question, where a discount house purchases merchandise directly from the producer and stores and transports it to the end customers, is an example of vertical integration as it eliminates the need for a wholesaler.

A Discount House Can Store and Transport Merchandise That Is