1. Direct-to-customer Drop-Shipped Fulfillment means:

a) Manufacturer maintains one distribution network for both channels

b) Manufacturer maintains two separate distribution networks for the “bricks-and-mortar” and “clicks-and-mortar” channels

c) Direct shipment to retailer bypassing the retailer’s network

d) Manufacturer services “bricks-and-mortar” channel and outsources “clicks-and-mortar” fulfillment

2. The __________ the profit margin, the ____________ the revenue equivalent for a given logistics cost savings.

a) Higher- higher

b) Lower- higher

c) Both a and b are correct

d) None of the above