Direct shipment distribution typically offers which of the following advantages?
A.
Risk pooling is facilitated.
B.
Demand variability is reduced.
C.
Service levels are increased.
D.
Lead times are reduced.
The Answer Is:
D
This question includes an explanation.
Explanation:
Direct shipment distribution involves shipping products directly from the manufacturer to the end customer, bypassing intermediate storage or handling facilities such as distribution centers or warehouses. This approach reduces lead times by eliminating the additional steps and delays associated with intermediate storage and handling. Direct shipment ensures that products reach customers faster, improving delivery speed and customer satisfaction. Additionally, it can reduce handling costs and minimize the risk of damage or loss during transit.
[References:, "The Handbook of Logistics and Distribution Management" by Alan Rushton, Phil Croucher, and Peter Baker, "Logistics & Supply Chain Management" by Martin Christopher, ]
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