QUESTION IMAGE
Question
which are two characteristics of fulfillment centers that differ from direct distribution? (choose two)
warehousing is a primary role.
fulfillment centers pack and ship for a manufacturer
the manufacturer controls all aspects of distribution
a fulfillment center is a zero level channel
inventory is created on - demand rather than stored
Brief Explanations
- Analyze "Warehousing is a primary role": Fulfillment centers focus on storing inventory (warehousing) before shipping, unlike direct distribution which often ships directly from production without extensive warehousing.
- Analyze "Fulfillment centers pack and ship for a manufacturer": Fulfillment centers act as a third - party to handle packing and shipping for manufacturers, while direct distribution is usually managed by the manufacturer's own system.
- Eliminate incorrect options:
- "The manufacturer controls all aspects of distribution" is wrong because in fulfillment center model, the manufacturer doesn't control all distribution aspects (fulfillment center takes part).
- "A fulfillment center is a zero - level channel" is wrong as zero - level channel is direct from manufacturer to customer without intermediaries, but fulfillment centers are intermediaries.
- "Inventory is created on - demand rather than stored" is wrong as fulfillment centers store inventory.
So the two correct characteristics are "Warehousing is a primary role" and "Fulfillment centers pack and ship for a manufacturer".
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- Warehousing is a primary role.
- Fulfillment centers pack and ship for a manufacturer.