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Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?
Correct Answer: B
* Context: Shipping directly from the point of manufacture to the customer eliminates the intermediate distribution network. * Options Breakdown: * A. Delivery lead times are consistent: Not necessarily true, as direct shipping can have variable lead times. * B. Risk pooling benefits are negated: Distribution centers pool inventory to reduce variability in demand and supply; direct shipping bypasses this advantage. * C. Distribution overhead is increased: Actually, distribution overhead is typically reduced with direct shipping. * D. Order-fill rate is decreased: Not necessarily true, as it depends on the efficiency of the direct shipping process. * Correct Answer Justification: Risk pooling helps manage demand variability and inventory levels more effectively; direct shipping bypasses distribution centers, thus negating these benefits. References: * Supply chain management textbooks and articles * Research on direct shipping vs. distribution center logistics