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प्रश्न
Explain Physical Distribution major components
State the four major components of physical distribution.
उत्तर
Components of physical distribution are as follows:
- Processing of Order: Processing of order implies the activities which occur between the placement of order and the final delivery to the consumer. It comprises steps such as placement of order, the intimation of order to the manufacturer and delivery of goods. The system of distribution should be such that the processing of the order is speedy. Speedy processing with sufficient accuracy leads to greater customer satisfaction.
- Transportation of Products: Transportation is the transfer of commodities from manufacturing facilities to distribution hubs and customers by numerous means, including road, rail, air, and sea.
- Warehousing: Warehousing implies storing the goods before they are finally sold to consumers. Storing of goods at the warehouse enables ready availability of goods at different locations as and when required. However, warehousing involves costs as well. Thus, the benefits of warehousing must be weighed against the costs involved so as to maintain a balance according to the requirement.
- Maintenance of Inventory: Maintaining inventories enables timely supply of products as and when required. Similar to warehousing, maintenance of inventory also involves a cost.
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संबंधित प्रश्न
Explain the components of physical distribution.
Under which of the following conditions does a business need not maintain the high level of inventory?
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“Best Electronics’ started manufacturing washing machines under the brand name ‘Amaze’. Once the washing machines were ‘manufactured, packaged, branded, priced and promoted, they had to be made available to the customers at the right place, in the right quantity and at the right time. “Best Electronics’ provided for accurate and speedy processing of orders so that the washing machines reach the customers in time, in the right quantity and specifications. They also ensured that the washing machines are physically made available to the customers. Further, ‘Best Electronics’ arranged for facilities to store the washing machines at different locations near the market to minimize the charges on transportation. |
Explain any three components of physical distribution discussed in the above case.
Statement I: For products requiring long term storage like agricultural products, the warehouses are located near to the market.
Statement II: Higher the level of inventory, higher will be the level of service to customers but the cost of carrying the inventory will also be high.
