Question

which are two characteristics of direct distribution that differ from fulfillment centers? (choose two)
inventory is stored for longer periods of time.
warehousing is outsourced.
the manufacturer controls all aspects of distribution.
packing and shipping is done by a third - party.
direct distribution is also known as a zero level channel.

Explanation:

To solve this, we analyze each option:

1. "Inventory is stored for longer periods of time": Fulfillment centers may store inventory longer, not direct distribution. Eliminate.
2. "Warehousing is outsourced": In direct distribution, the manufacturer often handles warehousing (or not outsourced typically), while fulfillment centers may outsource or have their own. Eliminate.
3. "The manufacturer controls all aspects of distribution": In direct distribution, the manufacturer directly manages distribution, unlike fulfillment centers (which may involve third - parties). This is a characteristic.
4. "Packing and shipping is done by a third - party": In direct distribution, the manufacturer usually does packing and shipping (or controls it), while fulfillment centers may use third - parties. Eliminate.
5. "Direct distribution is also known as a zero - level channel": This is a defining characteristic of direct distribution (no intermediaries), differing from fulfillment centers (which may have intermediaries or different channel levels).

Answer:

C. The manufacturer controls all aspects of distribution, E. Direct distribution is also known as a zero level channel