Which of the following is the most advantageous shipping arrangement for the retailer? FOB store FOB factory FOB shipping point All would be equally advantageous to the retailer

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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**Shipping Arrangements for Retailers**

When considering the most advantageous shipping arrangements for a retailer, it's important to evaluate different FOB (Free on Board) options:

1. **FOB Shipping Point**: The buyer takes ownership of the goods once they leave the seller's premises, making the buyer responsible for shipping costs and risks during transit.

2. **FOB Factory**: Similar to FOB Shipping Point, the buyer assumes responsibility for the goods as soon as they leave the factory.

3. **FOB Store**: The seller retains the risk and responsibility of the goods until they reach the retailer’s store. This can be beneficial for the retailer as the seller bears the transportation costs and risks.

4. **Equally Advantageous Scenario**: There might be situations where all options present similar benefits depending on the specific business arrangement, costs, and logistics involved.

Understanding these terms helps retailers choose the most cost-effective and risk-averse shipping strategy suited to their operations.
Transcribed Image Text:**Shipping Arrangements for Retailers** When considering the most advantageous shipping arrangements for a retailer, it's important to evaluate different FOB (Free on Board) options: 1. **FOB Shipping Point**: The buyer takes ownership of the goods once they leave the seller's premises, making the buyer responsible for shipping costs and risks during transit. 2. **FOB Factory**: Similar to FOB Shipping Point, the buyer assumes responsibility for the goods as soon as they leave the factory. 3. **FOB Store**: The seller retains the risk and responsibility of the goods until they reach the retailer’s store. This can be beneficial for the retailer as the seller bears the transportation costs and risks. 4. **Equally Advantageous Scenario**: There might be situations where all options present similar benefits depending on the specific business arrangement, costs, and logistics involved. Understanding these terms helps retailers choose the most cost-effective and risk-averse shipping strategy suited to their operations.
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