Marketing Chapter 4: Distribution Strategies

Distribution encompasses all of the channels, processes, and functions, including warehousing and transportation, that a product passes through on its way to the final customer (end user). It is the actual movement of products and materials between locations.

Order fulfillment is the process of ensuring on-time delivery of the customer's order.

<p>A company tries to sell its product from a small vendor to a big store. Virtually, a customer will be able to find the product everywhere he goes.</p> Signup and view all the answers

<p>Goods are transported directly from supplier to retail stores.</p> Signup and view all the answers

<p>No intermediaries, less damage, more accuracy in delivery</p> Signup and view all the answers

<p>Increased transportation costs, complicated management, higher number of shipments</p> Signup and view all the answers

<p>Manufacturer storage with direct shipping and in-transit merge; Distributor storage with carrier delivery; Distributor storage with last-mile delivery; Manufacturer/distributor storage with customer pickup; Retail storage with customer pickup</p> Signup and view all the answers

<p>Warehouses or Distribution centers- DCs will keep goods in stock to meet customer demand.</p> Signup and view all the answers

<p>Break bulk, repackaging, assembly, quality inspection, material handling and maintenance, storage</p> Signup and view all the answers

<p>Postponement involves moving some last stages in production, such as assembly or customization, to distribution centers or warehouses.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>In-transit merge is a distribution strategy where package carriers pick up multiple components of an order from different supplier locations and merge them at a hub before making a single delivery to the customer.</p> Signup and view all the answers

<p>Inventory costs are similar for both methods.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>Inventory is held by distributors or retailers in intermediate warehouses, and package carriers are used to transport products from the intermediate location to the final customer.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>The final stage of delivery from the distributor/retailer to the customer's home.</p> Signup and view all the answers

<p>Last-mile delivery has the highest transportation costs.</p> Signup and view all the answers

<p>In this approach, inventory is stored at the manufacturer or distributor warehouse, but customers place their orders online or on the phone and then travel to designated pickup points to collect their merchandise.</p> Signup and view all the answers

<p>Lower transportation costs, increased flexibility, convenient for customers</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>A transportation model is formulated for a class of problems where a product is transported from a number of sources to a number of destinations at the minimum possible cost, with each source able to supply a fixed number of units of the product and each destination having a fixed demand for the product.</p> Signup and view all the answers

<p>The transshipment model is an extension of the transportation model in which intermediate transshipment points are added between the sources and destinations.</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Air</p> Signup and view all the answers

<p>Rail</p> Signup and view all the answers

<p>Intermodal transportation combines several modes of shipping, such as truck, water, and rail, typically utilizing containers as a key component.</p> Signup and view all the answers