Which businesses purchase large quantities of products from a manufacturer and then separate or 'break' the bulk purchases into smaller units for resale to retailers?

Which businesses purchase large quantities of products from a manufacturer and then separate or 'break' the bulk purchases into smaller units for resale to retailers?

• A. Distributors
• B. Intermediaries
• C. Wholesalers
• D. Retailers

Answer: (C)

The main idea here is breaking bulk to serve retailers. Wholesalers buy large quantities from manufacturers and then divide those shipments into smaller lots for resale to retailers. This lowers the manufacturers’ shipping and handling costs and provides retailers with smaller, more manageable quantities they can stock and sell to customers. Wholesalers also often handle storage and distribution, acting as a key link in the supply chain between producers and retailers. Distributors can perform similar functions for a particular manufacturer but may focus more on representing the producer and handling sales in a region, rather than specifically breaking bulk for multiple retailers. Intermediaries is a broader term that could refer to various middlemen, and retailers buy in smaller quantities to sell to end consumers, not to other businesses.

The main idea here is breaking bulk to serve retailers. Wholesalers buy large quantities from manufacturers and then divide those shipments into smaller lots for resale to retailers. This lowers the manufacturers’ shipping and handling costs and provides retailers with smaller, more manageable quantities they can stock and sell to customers. Wholesalers also often handle storage and distribution, acting as a key link in the supply chain between producers and retailers.

Distributors can perform similar functions for a particular manufacturer but may focus more on representing the producer and handling sales in a region, rather than specifically breaking bulk for multiple retailers. Intermediaries is a broader term that could refer to various middlemen, and retailers buy in smaller quantities to sell to end consumers, not to other businesses.