Which of the Following Would Be a Disadvantage of Manufacturer

question 46

Multiple Choice

Which of the following would be a disadvantage of manufacturer storage with direct shipping?

• A)The ability to reduce cost of inventory by centralizing inventories at the manufacturer.
• B)The manufacturer has to postpone customization until after the customer order has been placed.
• C)Supply chains have to eliminate other warehousing space to save on the fixed cost of facilities.
• D)Response times tend to be large because the order has to be transmitted from the retailer to the manufacturer and shipping distances are on average longer from the manufacturer's centralized site.

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Definitions:

Net Method

An accounting method where sales and purchases are recorded at their net amounts after deducting any discounts, rather than recording the gross amount and then the discount separately.

Invoice Price

The original price listed by the manufacturer or a supplier on the invoice, before any discounts.