QUESTION IMAGE
Question
which are two characteristics of fulfillment centers that differ from direct distribution? (choose two)
inventory is created on - demand rather than stored.
the manufacturer controls all aspects of distribution.
a fulfillment center is a zero level channel.
fulfilment centers pack and ship for a manufacturer.
warehousing is a primary role.
Brief Explanations
- Analyze "Fulfillment centers pack and ship for a manufacturer": In direct distribution, the manufacturer usually handles packing and shipping themselves, while fulfillment centers do this for the manufacturer, so this is a difference.
- Analyze "Warehousing is a primary role": Fulfillment centers store inventory (warehousing), whereas direct distribution often focuses on on - demand production or direct delivery without heavy warehousing, so this is a difference.
- Eliminate other options: "Inventory is created on - demand rather than stored" is more like direct distribution. "The manufacturer controls all aspects of distribution" is true for direct distribution. "A fulfillment center is a zero - level channel" is incorrect as zero - level channel is direct from manufacturer to customer without intermediaries, but fulfillment centers are intermediaries.
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D. Fulfillment centers pack and ship for a manufacturer
E. Warehousing is a primary role