Practice Quiz

Supply Chain Manager Exam Prep

Category - Design and Improvement

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__________ is suited for a large variety of low demand, high value items where customers are willing to wait for delivery and accept several partial shipments.
  1. Drop shipping
  2. Direct shipping
  3. Line shipping
  4. Direct line shipping
Explanation
Answer: B - Direct shipping is suited for a large variety of low demand, high value items where customers are willing to wait for delivery and accept several partial shipments. Manufacturer storage is also appropriate if it allows the manufacturer to postpone customization, thus decreasing inventories.
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