When a firm uses a direct-shipment design,______.
A)each supplier sends shipments directly to each of the buying firm's locations
B)the only decision the buying company's purchasing manager has to make is the quantity of goods to be ordered
C)the only decision the buying company's purchasing manager has to make is the date the goods are to be delivered
D)the only decision the buying company's purchasing manager has to make is the price of goods to be ordered

Question

Quizplus · Accepted Answer

With a direct-shipment design, each supplier sends shipments directly to each of the buying firm's locations, eliminating the need for a central warehouse. The purchasing manager needs to coordinate delivery schedules and ensure that the right products are delivered to the right locations. Therefore, option A is the correct answer. Option B, C, and D is not correct, as the purchasing manager needs to make other decisions, such as coordinating delivery schedules and ensuring the right products are delivered.

When a Firm Uses a Direct-Shipment Design,______