Question

Which of the following are the different functions performed by the intermediaries in case of nondurables.

Options

• Arrangement

• Collection

• Allocation and Packing

• All of the above

Answer 1

All of the above

Explanation - 

The following are the many functions that intermediaries fulfil in the case of nondurables.

1. Arrangement :  An intermediary receives the supply of goods from various sources. He then sorts these goods into homogeneous groups based on their characteristics such as size, quality, etc. For instance, an electronic goods seller. receives supply of different electronic goods (T.V., washing machine etc.) and then sorts them based on their functions.
2. Collection: An intermediary maintains large stock of the goods so as to ensure easy flow of supply. For instance, the electronic goods seller maintains large stock of each type of the electronic item.
3. Allocation and Packing: This function includes breaking the larger stock into smaller units. For instance, each electronic item as well as their spare parts are packed separately.