31
factories
retailer
in-transit merge by carrier
customers
Product flow
Information flow
Gambar 2.7 Manufacturer storage with direct shipping an in – transit merge
Performance characteristics of In-Transit Merge
Cost factor
Performance
Inventory
Similar to drop-shipping
Transportation
Somewhat lower transportation costs than drop-shipping
Facilities and handling
Handling cost
higher than drop-shipping at carrier; receiving
costs lower to customer.
Information
Investment is somewhat higher than for drop-shipping.
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