- Manufacturers would set up distribution centers /depots or warehouses which are additional
costs to manufacturers.
- The cost of distribution may be increased and the subsequent increase passed on to consumers
inform of
higher prices.
- The retailers would have to go to manufacturers, which is an additional cost to retailers.
- The producers would have to break the bulk because retailers may not be able to buy in large
quantities.
- Manufacturers may be required to extend credit facilities to retailers, which require additional
financial capital.
- Due to additional functions to producers, it will reduce their specialization in production.
- Prices may fluctuate due to unsteady flow of goods.
gideon1 answered the question on October 2, 2017 at 17:07
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