What technique involves a manufacturer sending individual components to a distributor?

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Prepare for UCF's MAR3203 Supply Chain and Operations Management Exam 4 with essential study materials. Review concepts with flashcards and multiple-choice questions, complete with explanations. Maximize your exam readiness today!

The correct answer is channel assembly. This technique refers to the process where a manufacturer sends individual components directly to a distributor, who then assembles the final product for distribution to the end customer. Channel assembly allows for greater flexibility and efficiency in the supply chain by enabling distributors to assemble products tailored to specific customer demands without requiring the manufacturer to handle the final assembly.

This method can help in reducing inventory costs and improving responsiveness since distributors can manage their inventories based on real-time demand rather than relying on fully assembled products from the manufacturer. By allowing the distributor to customize the final product configuration, channel assembly also supports a more adaptive supply chain, enhancing the overall efficiency and effectiveness of operations.

In contrast, drop shipping involves a retailer transferring customer orders and shipment details to the manufacturer or a wholesaler, who then ships the goods directly to the customer, without the retailer handling the physical product. Direct shipping closely resembles drop shipping but may imply direct delivery from manufacturer to customer without the retailer's involvement. Component distribution is a broader term and does not specifically refer to the assembly process within a distribution strategy.