Final answer:
Channel assembly is a strategic approach where final assembly is deferred to distributors, allowing for customization according to demand. The false statement is that it involves sending finished products to distributors, as this contradicts the principle of postponement.
Step-by-step explanation:
Channel assembly refers to a strategy in supply chain management where the distribution channel is given the responsibility of the final assembly of products. This is done to allow for customization and to reduce inventory holding costs. The strategy is a form of postponement strategy where the final production steps are delayed until the last possible moment. In channel assembly, distributors are treated as partners in the production process as they perform the final steps of assembling the product. This allows for products to be customized based on actual customer demand rather than forecasting.
The statement that is NOT true regarding channel assembly is: 4) "Channel assembly sends individual components, modules, and finished products, to the distributor". Channel assembly does not typically involve sending finished products as this would defeat the purpose of postponing final assembly to the point of distribution.