Which Distribution Network Design Is Being Used When Inventory Is

question 10

Multiple Choice

Which distribution network design is being used when inventory is stored locally at retail stores and customers walk into the retail store or place an order online or on the phone and pick it up at the retail store?

• A)Manufacturer storage with direct shipping
• B)Distributor storage with package carrier delivery
• C)Distributor storage with last mile delivery
• D)Retail storage with customer pickup

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Definitions:

Summarized Operations

A condensed presentation of the activities and outcomes of an organization's business operations.

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding direct materials and direct labor expenses.

Direct Labor Cost

Direct labor cost refers to the expense incurred by a company for wages paid to workers directly involved in the production of goods or services.

Overapplied

A situation where the allocated costs in cost accounting exceed the actual costs.