Setting up a hub-and-spoke distribution towards inventory and retail delivery is an example of
A)increased consumer transactions cost.
B)increased producer transactions cost.
C)reduced consumer transactions cost.
D)reduced producer transactions cost.

Question

Quizplus · Accepted Answer

Setting up a hub-and-spoke distribution towards inventory and retail delivery reduces producer transactions cost as it reduces the need for multiple direct deliveries to retail stores, which can be more expensive and inefficient. By centralizing the distribution process, producers can also better manage inventory levels and reduce the risk of overstocking or understocking at individual retail locations. This can ultimately lead to cost savings for the producer and potentially lower retail prices for consumers.

Setting Up a Hub-And-Spoke Distribution Towards Inventory and Retail Delivery