June 4, 2018 at 6:48 PM 1/ With Manufacturer Storage with Direct Shipping, there
ID: 2088589 • Letter: J
Question
June 4, 2018 at 6:48 PM 1/ With Manufacturer Storage with Direct Shipping, there is a? 2/ Explain the reason why inventory handling and holding costs are usually high for retailer storage with customer pick-up.? Maximum number of characters (including HTML tags added by text editor): 32,000. 3/ Who owns the inventory stored by the manufacturer in a Manufacturer Storage with Direct Shipping distribution network? 4/ To the customer, Manufacturer Storage with Direct Shipping may be undesirable because of 5/ Differentiate between Distributor Storage with Customer Pickup, and Distributor Storage with Last Mile Delivery Maximum number of characters (including HTML tags added by text editor): 32,000 6/ In-Transit Merge helps to? TIExplanation / Answer
1.)
In manufacturing storage with dierct shipping there is a product shipped directly from the manufacturer to the end customer, bypassing the retailer.
2.)
Inventory handling and storage cost are usually high for retailer, the reason is that good will transport from manufacturing to regional distribution center to local distribution center to retailer. So that it is usually happening that all transportation cost and inventory handaling cost is added in each stop. Finally when it reaches to the retailer its price is already high. Not so many customers visit a single retailer, so that at retailer good handling and holding cost increases day by day. So it is good practice to increase make goods directly reaching manufacturing unit to distribution center to customer which will reduce the cost of the good due to less expense in transportation and handling of inventory.
3.)
Manufacturer owns inventory stored by manufacturer in storage with direct shipping distribution network. In this type of case product is shipped directly from the manufacturer to the end customer, bypassing the retailer (who takes the order and initiates the delivery request). This option is also referred to as drop shipping. All inventories are stored at the manufacturer. Information flows from the customer, via the retailer, to the manufacturer, while product is shipped directly from the manufacturer to customers.
4.)
Response times tend to be large when drop shipping is used because the order has to be transmitted from the customer to retailer to the manufacturer and shipping distances are on average longer from the manufacturer's centralized site. eBags, for example, states that order processing may take from 1-5 days and ground transportation after that may take from 3-11 business days.
Direct shipping may be undesirable for customer because sometimes it may happen that internation shipping charges to be borne by customer.
Customer can not physically see the product from manufacturer before buying.
A manufacturer storage network is likely to have difficulty handling returns of defected product, hurting customer satisfaction.
5.)
distributor storage with customer pickup
In this approach, inventory is stored at the manufacturer or distributor warehouse but customers place their orders online or on the phone and then come to designate pickup points to collect their orders. Orders are shipped from the storagesite to the pickup points as needed.
distributor storage with last mile delivery
Last mile delivery refers to the distributor / retailer delivering the product to the customer's home instead of using a package carrier. Webvan, Peapod, and Alberston's have used last mile delivery in the grocery industry. Unlike package carrier delivery, last mile delivery requires the distributor warehouse to be much closer to the customer, increasing the number of warehouses required.
6.)
In-transit merge it combines pieces of the order coming from different locations so that the customer gets a single delivery. it helps in reducing transportation cost for each delivery to customer, instead it make only one delivery combining all items from different manufcturers in one package.
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