Explain the six distinct distribution network designs that may be used to move products from factory to customer
What will be an ideal response?
Answer: In manufacturer storage with direct shipping, product is shipped directly from the manufacturer to the end customer, bypassing the retailer (who takes the order and initiates the delivery request). This option is also referred to as drop-shipping with product delivered directly from the manufacturer to the customer location.
Manufacturer storage with direct shipping and in-transit merge is similar to pure drop-shipping, except that pieces of the order coming from different locations are combined so that the customer gets a single delivery.
Distributor storage with package carrier delivery is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in intermediate warehouses, and package carriers are used to transport products from the intermediate location to the final customer.
Distributor storage with last mile delivery is being used when the distributor/retailer delivers the product to the customer's home instead of using a package carrier.
Manufacturer/distributor storage with customer pickup is being used when inventory is stored at the manufacturer or distributor warehouse but customers place their orders online or on the phone and then come to designated pickup points to collect their orders.
Retail storage with customer pickup is being used when inventory is stored locally at retail stores and customers walk into the retail store or place an order online or on the phone and pick it up at the retail store.
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