Direct shipment distribution typically offers which of the following advantages?
Direct shipment distribution typically offers which of the following advantages?
Direct shipment distribution typically offers the advantage of reducing lead times because products are shipped directly from the manufacturer to the customer without the intermediate step of going through a distribution center. This direct route minimizes the time products spend in transit and in storage, thus reducing the overall lead time from order to delivery.
D is correct.
Wouldn't demand variability be reduced since without a distributor involved, there is less chance for bullwhip?
I agree, at least that is what was taught in the learning system. The wording in some of these questions are very ambiguous. What exactly is meant by "direct shipping distribution"?
I think it is about from Manufacturer to retail shop/customer without distribution center.
Aren't lead times usually shorter when using a distributor as they are located closer to the end customer?
I think that it is true for Lead time from customer point of view. But these products have to be manufactured earlier in order to be in DC. So total lead time can be higher. But the question is a bit blurry for me.