Discuss why economies of scale in transportation might encourage a producer to include a regional merchant wholesaler in the channel of distribution for its consumer product.
Answer to relevant QuestionsDiscuss some of the ways that air transportation can change other aspects of a Place system. If a retailer operates only from a website and ships all orders by UPS, is it freed from the logistics issues that face traditional retailers? Explain your thinking. Discuss the problems a supplier might encounter in using a just-in-time delivery system with a customer in a foreign country. What alternatives does a producer have if it is trying to expand distribution in a foreign market and finds that the best existing merchant wholesalers won’t handle imported products? Art Glass Productions, a producer of decorative glass gift items, wants to expand into a new territory. Managers at Art Glass know that unit sales in the new territory will be affected by consumer response to the products. ...
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