Question

Which wholesaler channel function helps reduce the inventory holding costs and risks of suppliers and customers?

A) showrooming
B) assortment building
C) warehousing
D) financing
E) transporting

Answer 1

The wholesaler channel function that helps reduce inventory holding costs and risks of suppliers and customers is warehousing.

Step-by-step explanation:

The wholesaler channel function that helps reduce inventory holding costs and risks of suppliers and customers is warehousing.

Warehousing involves storing goods in a central location before they are distributed to retailers or customers. This reduces the need for suppliers and customers to hold excess inventory, as they can rely on the warehouse to store and manage the goods.

For example, Amazon holds its inventories in huge warehouses in low-rent locations, which allows for efficient inventory management and lower costs. By utilizing warehousing, Amazon can reduce inventory holding costs and risks for both suppliers and customers.