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

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

Step-by-step explanation:

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

Warehousing involves storing products in a centralized location, which allows suppliers and customers to reduce their inventory holding costs. By outsourcing their warehousing needs to wholesalers, suppliers and customers can take advantage of economies of scale, as the wholesalers can store large quantities of goods and distribute them efficiently.

For example, Amazon holds its inventories in huge warehouses in low-rent locations, enabling them to offer a wide selection of products and quick delivery.