A company is considering using a direct distribution strategy. What is a disadvantage of this distribution strategy?

A direct distribution strategy refers to a company selling their goods directly to final consumers. Internet sales have made such a strategy possible for many companies, but there are still some problems and issues that need to be solved.

The main problem with direct distribution strategies is that they require a lot of work, and many times companies are not ready to carry them out. E.g. a company that generally sells their products using wholesalers will have only a few customers, but a direct distribution strategy means that the number of customers will increase dramatically.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

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