Drop Shipment

question 13

Multiple Choice

Drop shipment

• A) is equivalent to cross-docking
• B) is the opposite of a blanket order
• C) means the supplier will ship directly to the end consumer, rather than to the seller
• D) is the same thing as keiretsu
• E) is a good reason to find a new firm to ship your products

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Definitions:

Cross-docking

A logistics practice where incoming shipments are directly transferred from inbound to outbound vehicles, minimizing storage time and reducing handling costs.

Blanket Order

A long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.

Keiretsu

A set of companies with interlocking business relationships and shareholdings in Japan, forming a tight-knit alliance to work toward mutual success.

Company Coalition

A strategic alliance or partnership between companies aimed at achieving a set of common objectives or enhancing competitive advantage.