Supply Chain Management

Category - Design and Improvement

In direct shipping, ________ has an output of lower costs due to aggregation.
  1. Merchandise
  2. Goods Sold
  3. Inventory
  4. All of the above.
Explanation
Answer: C - In direct shipping, inventory has an output of lower costs due to aggregation. Benefits of aggregation are highest for low demand and high value items. Benefits are also very large if product customization can be postponed at the manufacturer.
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