The Major Disadvantage of In-Transit Merge Compared to Drop-Shipping Is

question 95

Multiple Choice

The major disadvantage of in-transit merge compared to drop-shipping is

• A)transportation costs are high because the average outbound distance to the end consumer is large and package carriers are used to shipping the product.
• B)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.
• C)order tracking becomes harder to implement because it requires complete integration of information systems at both the retailer and the manufacturer.
• D)the additional effort during the merge itself.

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Definitions:

Downward-Sloping

Refers to a curve or line that decreases in value as it moves from left to right, often used in economics to describe demand curves where quantity demanded decreases as the price increases.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to buy.

Monopoly

A market structure characterized by a single seller selling a unique product in the market with no close substitutes.

Above MR Curve

A situation where the price level of goods or services is higher than the marginal revenue that these goods or services generate.