Multiple choice technology packaged enterprise solutions

The seller sends the purchase order to the supplier for the full quantity that the customer had ordered is called as

  1. Normal Shipments and Full Drop Shipment

  2. Full Drop Shipment

  3. Normal Shipments and Partial Drop Shipment

  4. None of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Full Drop Shipment occurs when the seller sends the purchase order to the supplier for the complete customer order quantity, and the supplier ships directly to the customer. The 'full' indicates the entire order is drop-shipped, not split between normal and drop shipment methods.

AI explanation

A Full Drop Shipment occurs when the seller (who does not hold inventory to fulfill the order) sends the purchase order to its supplier for the entire quantity that the customer ordered, and the supplier ships directly to the customer — the seller never physically handles the goods. This is distinct from a Normal Shipment (seller ships from its own inventory) or a Partial Drop Shipment (only part of the order quantity is drop-shipped, with the remainder fulfilled normally). Since the scenario describes the full ordered quantity being routed to the supplier, Full Drop Shipment is the correct classification.