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:

Switching Costs

Economic barriers that prevent or discourage consumers from changing products or service providers.

Supplier Power

Refers to the ability of providers of goods or services to influence the price and terms under which those goods or services are sold.

Critical Inputs

Essential resources or components required for a production process or operational function.

Unsubstitutable

Describes a good or service that cannot be replaced or substituted by another due to its unique characteristics or the specific needs it meets.